Tesla reported record second-quarter revenue of $28.24 billion, surpassing Wall Street expectations, but fell short of profit forecasts as rising costs weighed on earnings.
The company posted adjusted earnings per share of $0.33, below analysts' estimates, despite delivering a record 480,126 vehicles during the quarter.
The report showed capital expenditures more than doubled to $5.8 billion as Tesla increased investment in its Optimus humanoid robot and robotaxi programs.
Operating expenses also climbed 47 percent, resulting in negative free cash flow of $1.1 billion. Operating income fell 57 percent from a year earlier, while the operating margin narrowed to 1.4 percent.
Tesla's energy storage business continued to expand, with deployments rising more than 40 percent to 13.5 GWh, helping diversify revenue as pressure on its automotive business persists.
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Breaking news: Tesla’s profits dropped unexpectedly as Elon Musk’s group offered discounts to boost electric-vehicle sales and revenue from sales of regulatory credits to rivals dried up. https://t.co/vEIcJ6HAGN pic.twitter.com/1Au9pqdrFI
— Financial Times (@FT) July 22, 2026
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