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Tesla

Tesla (TSLA) Q2 2026 Earnings

Reported Jul 22, 2026 at 4:35 PM ET · SEC Source

Q2 26 EPS

$0.33

MISS 38.51%

Est. $0.54

Q2 26 Revenue

$28.24B

BEAT +7.10%

Est. $26.36B

vs S&P Since Q2 26

-17.6%

TRAILING MARKET

TSLA -17.5% vs S&P +0.1%

Market Reaction

Did TSLA Beat Earnings? Q2 2026 Results

Tesla delivered a tale of two results in Q2 2026, posting revenue that cleared Wall Street's bar while earnings fell well short, leaving investors to weigh a growth story complicated by aggressive spending. The company reported $28.24 billion in reve… Read more Tesla delivered a tale of two results in Q2 2026, posting revenue that cleared Wall Street's bar while earnings fell well short, leaving investors to weigh a growth story complicated by aggressive spending. The company reported $28.24 billion in revenue, up 25.5% year-over-year and ahead of the $26.36 billion consensus by 7.10%, yet non-GAAP EPS of $0.33 missed the $0.54 estimate by 38.51% as operating expenses surged 47% to $4.35 billion, driven by AI infrastructure buildout, R&D investment, and stock-based compensation tied to the 2025 CEO Performance Award. The spending pressure crushed operating margins to just 1.4%, even as record deliveries of 480,126 vehicles and 13.5 GWh of energy storage deployments underscored operational momentum. Free cash flow turned negative at $1.09 billion, a sharp reversal that has analysts scrutinizing whether Tesla's $25 billion capital budget will justify returns. Looking ahead, Tesla expects hardware profits to be gradually accompanied by accelerating AI, software, and fleet-based revenues as its Robotaxi network expands and Optimus production ramps through 2026.

Key Takeaways

  • • Record Q2 vehicle deliveries of 480,126, up 25% YoY
  • • Services and Other revenue grew 50% YoY with record profitability and 14% gross margin
  • • Energy storage deployments of 13.5 GWh, up 41% YoY
  • • FSD subscription attach rate exceeded 55% of new North American deliveries
  • • Active FSD subscriptions reached 1.48 million, up 56% YoY
  • • Lower average cost per vehicle due to lower inbound duties
  • • Positive FX impact of $0.5B on revenue
  • • Lower vehicle ASP (excluding FX) weighed on profitability
  • • Operating expenses surged 47% YoY driven by AI/R&D, SBC, and SG&A
  • • Lower regulatory credit revenue

TSLA Forward Guidance & Outlook

Tesla is focused on maximum capacity utilization at its factories, with deliveries and deployments impacted by aggregate demand, supply chain readiness, and allocation decisions between customer sales and its owned Robotaxi fleet. The company will manage the business to ensure a strong balance sheet with sufficient liquidity for its product roadmap and long-term capacity expansion, including vertical integration. Over time, Tesla expects hardware-related profits to be accompanied by an acceleration of AI, software, and fleet-based profits. The company continues to evolve its product lineup with focus on cost, scale, and future monetization via AI-powered services, leveraging existing production capacity before building new factories. Tesla Semi and Megapack 3 remain on schedule for production starting in 2026. First-generation Optimus production lines are being installed with production anticipated in 2026. Capacity buildout for AI compute, solar, battery material, and semiconductor manufacturing is underway.

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TSLA YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

TSLA Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 24 Q2 26
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