Tesla's second-quarter revenue rose 26% to $28.24 billion, while net income fell 5% to $1.11 billion. Shares dropped another 3.92% after the results.
Tesla released its second-quarter results after the U.S. market closed on July 22, 2026. Revenue rose 26% from a year earlier to $28.24 billion. GAAP net income fell 5% to $1.11 billion. Diluted GAAP earnings were $0.32 per share, and adjusted earnings were $0.33 per share.
Revenue rose as operating income declined
Before the release, Tesla published a company-compiled average analyst forecast of $27.584 billion in revenue, $0.36 in GAAP earnings per share, and $0.55 in adjusted earnings per share.
| Measure | Q2 result | Tesla-compiled average forecast |
|---|---|---|
| Revenue | $28.24 billion | $27.584 billion |
| GAAP earnings per share | $0.32 | $0.36 |
| Adjusted earnings per share | $0.33 | $0.55 |
Operating income was $398 million, down 57% from the same quarter last year. Operating margin narrowed from 4.1% to 1.4%. Research and development spending increased about 49% to $2.37 billion.
Tesla delivered 480,126 vehicles
Tesla produced 451,758 vehicles and delivered 480,126 during the quarter. Model 3 and Model Y accounted for 467,762 deliveries, while other models accounted for 12,364.
The company also deployed 13.5 GWh of energy storage products. Tesla reported its production, delivery, and storage figures on July 2, before releasing the full financial results.
Capital expenditure reached $5.79 billion
Second-quarter capital expenditure rose 142% from a year earlier to $5.79 billion. Cash provided by operating activities was $4.70 billion, while free cash flow was negative $1.09 billion after capital spending.
Tesla expects full-year 2026 capital expenditure to exceed $25 billion. The company said it is investing in robotaxis, the Optimus humanoid robot, semiconductor production, solar manufacturing, and AI computing infrastructure.
Cybercab production began at Gigafactory Texas during the quarter. At the Fremont factory in California, Tesla removed the discontinued Model S and Model X assembly lines and began installing its first Optimus production lines.
Shares declined in after-hours trading
Tesla shares closed at $374.05 on July 22, down 1.29% in the regular session. After the results, the stock fell another 3.92% to $359.35 in after-hours trading. An earlier Associated Press update put the initial after-hours decline at 4.1%.