Tesla (TSLA) Q2 2026 earnings report

Tesla’s It reported weaker-than-expected second-quarter profits even though revenue beat estimates. The stock lost nearly 3% in extended trading Wednesday.

Here’s how the company performs compared to Wall Street’s expectations, according to the estimates of analysts surveyed by LSEG

• earnings per share: 33 cents adjusted, 51 cents expected
• Revenues: $28.24 billion, expected $25.71 billion

Tesla’s earnings report comes amid a steep decline in its stock price, which has seen it down nearly 11% this month and 17% for the year. The decline coincided with a decline in Elon Musk’s other trillion-dollar company, SpaceX, which made a record debut in June and has lost more than 40% of its value since its peak close.

In the company’s statement, it was stated that revenue in this period increased by 26% compared to $ 22.5 billion in the previous year. Net income fell 5% to $1.11 billion, or 32 cents per share, from $1.17 billion, or 33 cents per share, a year ago.

Tesla’s core automotive segment generated $20.52 billion in revenue, up 23% from the previous year. Revenue in its energy business, which consists of solar and battery energy storage systems, rose 13% to $3.14 billion. Revenue from services and other business, which includes repair fees for out-of-warranty vehicles, rose 50% to $4.58 billion.

Operating expenses grew much faster than revenue as the company poured money into artificial intelligence and other research and development projects. A 47% increase in operating expenses brought the total to $4.35 billion in the second quarter.

Musk shifted the company’s focus from vehicle sales to its driverless Robotaxi service, ramping up production of the company’s driverless Cybercab and rebuilding old factory lines in Fremont, California, to begin producing Optimus humanoid robots. It promised shareholders and fans an AI-powered robot that could step in as a babysitter, factory worker or world-class surgeon.

Tesla’s free cash flow turned negative in the quarter. The $1.1 billion deficit comes after the company generated free cash flow of $146 million a year ago and $1.44 billion in the first quarter of 2026.

Tesla said in its shareholder filing that it will “manage it in a way that ensures a strong balance sheet, maintains sufficient liquidity to fund our product roadmap, long-term capacity expansion plans (including greater vertical integration), and other expenses.”

Meanwhile, capital expenditures rose 142% to $5.79 billion, from $2.39 billion in the same quarter last year. CFO Vaibhav Taneja told shareholders during the company’s last earnings call in April that capex would exceed $25 billion this year.

“Capacity development and ramp-up efforts are ongoing related to our multi-year infrastructure initiatives, including artificial intelligence computing, solar energy, battery material and semiconductor manufacturing,” the company said in its earnings release.

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