# Tesla (TSLA) Q2 2026 earnings

Results filed 2026-07-22 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/tsla/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1318605/000162828026049213/0001628280-26-049213-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total revenues | $28.2B | up 26% YoY | GAAP |
| Net income | $1.1B | -5% YoY | GAAP |
| Diluted EPS attributable to common stockholders | 0.32 | -3% YoY | GAAP |
| Diluted EPS attributable to common stockholders | 0.33 | -18% YoY | non-GAAP |
| Total GAAP gross margin | 16.8% | -41 bp YoY | GAAP |
| Income from operations | $0.4B | down 57% YoY | GAAP |
| Operating margin | 1.4% | -269 bp YoY | GAAP |
| Operating cash flow | $4.7B | up 85% YoY | GAAP |
| Free cash flow | negative $1.1B | -848% YoY | non-GAAP |

## Segments and operating metrics

| Name | 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 (millions) | 1.48 | 56% YoY |

## Key takeaways

1. **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.
2. **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.
3. **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.
4. **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%.
5. **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.

## 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.