Tesla reports lower earnings despite $28B Q2 revenue
Tesla announced unexpected financial results for the second quarter of 2026, recording revenues of $28.24 billion, surpassing expectations. However, earnings were lower than forecasts by 33 cents per share, totaling $1.11 billion, representing a 5% decline compared to the previous year. Despite a 23% increase in automotive revenue, gross profit margin decreased to 16.8% due to lower average selling prices and a decline in regulatory credit revenues. Operating expenses rose by 47% to $4.35 billion, driven by increased spending on artificial intelligence and robotics projects, including the development of Optimus robots and robotic taxis, as the company focuses on expanding production capacity and emphasizing autonomous driving services and smart robots. Additionally, the company's free cash flow turned negative by $1.1 billion amid a 142% increase in capital expenditures. Tesla is aiming to boost production and expand its projects in energy and AI fields, with plans to fund its long-term development and expansion despite current financial challenges.
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