Tesla (TSLA) · Automotive
Tesla Q2 2026 earnings: summary, key numbers & outlook
Results filed 22 Jul 2026 · Quarter ended 30 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Tesla's total quarterly revenue increased 26% YoY to $28.2B, while operating income decreased 57% YoY to $0.4B, resulting in a 1.4% operating margin, and GAAP net income was $1.1B.
Tesla sold more cars, stored more energy and grew services faster than a year ago. Revenue rose 26% to $28.2B, driven by record second-quarter deliveries of 480,126 vehicles, energy storage deployments of 13.5 GWh and Services and Other revenue up 50%. Profit was thin, though: operating income fell 57% to $0.4B because spending on AI and other R&D, stock compensation and SG&A grew, and regulatory credit revenue and vehicle prices fell.
Management gave no numerical targets. It says it is focused on using factory capacity fully, with deliveries depending on demand, supply chain readiness and how many vehicles go to its own fleet. It plans Cybercab, Semi, Megapack 3 and Optimus production in 2026. The tension is cash: capital spending of 5,789 million turned free cash flow negative $1.1B, and battery pack capacity still limits vehicle output.
Key numbers
- Total revenues · GAAP
- $28.2B
- Net income · GAAP
- $1.1B
- Diluted EPS attributable to common stockholders · GAAP
- 0.32
- Diluted EPS attributable to common stockholders · non-GAAP
- 0.33
- Total GAAP gross margin · GAAP
- 16.8%
- Income from operations · GAAP
- $0.4B
- Operating margin · GAAP
- 1.4%
- Operating cash flow · GAAP
- $4.7B
up 26% YoY
-5% YoY
-3% YoY
-18% YoY
-41 bp YoY
down 57% YoY
-269 bp YoY
up 85% YoY
| Segment or metric | Value | Change |
|---|---|---|
| Total automotive revenues | 20,516 | 23% YoY |
| Energy generation and storage revenue | 3,139 | 13% YoY |
| Total vehicle deliveries | 480,126 | 25% YoY |
| Storage deployed (GWh) | 13.5 | 41% YoY |
| Active FSD subscriptions | 1.48 | 56% YoY |
Where each number comes from
- Total revenues: “Total quarterly revenue increased 26% YoY to $28.2B. YoY, revenue was impacted by the following items”
- Net income: “Profitability $0.4B GAAP operating income $1.1B GAAP net income $1.2B non-GAAP net income1”
- Diluted EPS attributable to common stockholders: “EPS attributable to common stockholders, diluted (GAAP) 0.33 0.39 0.24 0.13 0.32 -3%”
- Diluted EPS attributable to common stockholders: “EPS attributable to common stockholders, diluted (non-GAAP) 0.40 0.50 0.50 0.41 0.33 -18%”
- Total GAAP gross margin: “Total gross profit 3,878 5,054 5,009 4,720 4,751 23% Total GAAP gross margin 17.2% 18.0% 20.1% 21.1% 16.8% -41 bp”
- Income from operations: “Our quarterly operating income decreased 57% YoY to $0.4B, resulting in a 1.4% operating margin.”
- Operating margin: “Our quarterly operating income decreased 57% YoY to $0.4B, resulting in a 1.4% operating margin.”
- Operating cash flow: “Cash Operating cash flow of $4.7B Free cash flow2 of negative $1.1B $1.2B decrease in our cash and investments3”
- Total automotive revenues: “Total automotive revenues 16,661 21,205 17,693 16,234 20,516 23% Energy generation and storage revenue 2,789”
- Energy generation and storage revenue: “Energy generation and storage revenue 2,789 3,415 3,837 2,408 3,139 13% Services and other revenue 3,046”
- Total vehicle deliveries: “Total deliveries 384,122 497,099 418,227 358,023 480,126 25% of which subject to operating lease accounting 6,670”
- Storage deployed (GWh): “Storage deployed (GWh) 9.6 12.5 14.2 8.8 13.5 41% Supercharger stations 7,377 7,753”
- Active FSD subscriptions: “Active FSD Subscriptions(2) (mil) 0.95 1.04 1.10 1.28 1.48 56% Total end of quarter operating lease (new vehicle) count(3)”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $28.2B | +25.5% | +26.1% |
| Operating income | $398.0M | −56.9% | −57.7% |
| Net income | $1.1B | −4.9% | +133.5% |
| Diluted EPS | $0.32 | −3.0% | +146.2% |
| Free cash flow | -$1.1B | — | — |
| Gross margin | 16.8% | −0.4 pts | −4.3 pts |
| Operating margin | 1.4% | −2.7 pts | −2.8 pts |
Calculated by code from XBRL, not by the model.
Key takeaways
Revenue grew 26% but operating income fell
Total quarterly revenue increased 26% YoY to $28.2B, yet operating income decreased 57% YoY to $0.4B. Operating expenses rose 47% to 4,353 million.
Record Q2 deliveries of 480,126 vehicles
Total deliveries rose 25% YoY, with Model 3/Y deliveries at 467,762. Days of supply fell to 15 from 24 a year ago.
Capex surge turned free cash flow negative
Capital expenditures were 5,789 million versus 2,394 million a year ago, so free cash flow was negative $1.1B. Cash and investments fell $1.2B to $43.5B.
Services and Energy both grew strongly
Services and Other revenue rose 50% to 4,581 million, with record gross profit of $648M at a 14% gross margin. Storage deployed reached 13.5 GWh, up 41%.
FSD and Robotaxi expanded; Cybercab started
Active FSD subscriptions reached 1.48 million, up 56%, and Robotaxi is live in seven major metros. Cybercab production began at Gigafactory Texas.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $25.7B * |
| Q1 2025 | $19.3B |
| Q2 2025 | $22.5B |
| Q3 2025 | $28.1B |
| Q4 2025 | $24.9B * |
| Q1 2026 | $22.4B |
| Q2 2026 | $28.2B |
| Q3 2026 | $28.0B |
Data
| Q1 2025 | $0.12 |
| Q2 2025 | $0.33 |
| Q3 2025 | $0.39 |
| Q1 2026 | $0.13 |
| Q2 2026 | $0.32 |
| Q3 2026 | $0.22 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 6.2% |
| Q1 2025 | 2.1% |
| Q2 2025 | 4.1% |
| Q3 2025 | 5.8% |
| Q4 2025 | 5.7% |
| Q1 2026 | 4.2% |
| Q2 2026 | 1.4% |
| Q3 2026 | 2.6% |
Data
| Q4 2024 | $2.0B |
| Q1 2025 | $664.0M |
| Q2 2025 | $146.0M |
| Q3 2025 | $4.0B |
| Q4 2025 | $1.4B |
| Q1 2026 | $1.4B |
| Q2 2026 | -$1.1B |
| Q3 2026 | $1.5B |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Tesla's Q2 2026 headline results?
Revenue was $28.2B, up 26% YoY, with GAAP net income of $1.1B and diluted GAAP EPS of 0.32. Operating income was $0.4B, a 1.4% operating margin.
Why did Tesla's operating income fall 57%?
Operating expenses rose on AI and other R&D projects, stock-based compensation (including the 2025 CEO Performance Award) and SG&A. Lower regulatory credit revenue, lower vehicle ASP and an energy warranty charge due to a vendor cell issue also weighed.
How was Tesla's cash flow in Q2 2026?
Operating cash flow was $4.7B, but capex of 5,789 million pushed free cash flow to negative $1.1B. Cash, cash equivalents and short-term investments ended at $43.5B.
How did Tesla's vehicle and energy volumes do?
Tesla delivered 480,126 vehicles, up 25% YoY, a record for a second quarter. Energy storage deployments were 13.5 GWh, up 41%.
What does Tesla expect next?
Tesla gave no numerical guidance. It says deliveries depend on demand, supply chain readiness and fleet allocation, and that Tesla Semi, Megapack 3 and Optimus production are expected in 2026.
Documents
SEC filing