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Red Flags Detected

  • Benavides V. Tesla Jury Verdict ($329m Total Damages, 33% Tesla Fault) (new) — A Florida jury awarded $329M in damages for a 2019 Autopilot-related fatality; Tesla appealed in July 2026 and recorded an immaterial accrual despite the large nominal award.
  • New Securities Class Action (august 2025, Western District of Texas) (new) — Alleges material misrepresentations about Autopilot, FSD, and Robotaxi effectiveness for the period April 2023 to June 2025; Tesla's motion to dismiss is pending.
NASDAQ: TSLA Tesla, Inc. 10-Q

Tesla Q2 2026: Revenue +26% to $28.2B, net income -5%

Filed July 23, 2026 · Period ending June 30, 2026 · Compared to 10-Q Jul 24, 2025 · ~2 min read

Key Financials

SEC XBRL
Metric PriorJun 30, 2025 CurrentJun 30, 2026 Δ
Revenue $22.5B $28.2B ▲ +25.5%
Net income (to common) $1.17B $1.12B ▼ -4.8%
Diluted EPS $0.33 $0.32 ▼ -5.3%
Operating income $923.0M $398.0M ▼ -56.9%
Cash & equivalents $15.6B $15.2B ▼ -2.4%
Long-term debt $4.99B $7.72B ▲ +54.6%
Total assets $128.6B $148.5B ▲ +15.5%

As reported in XBRL by the filer · 10-Q vs 10-Q. Income figures cover the fiscal quarter (not year-to-date); cash & assets are period-end balances. n/m = not meaningful (sign change; a % would mislead). about this table · verify on EDGAR →

Key Number Changes

Revenue (Q2 and H1 2026 vs 2025) MD&A

Prior filing · verify on EDGAR →

During the three and six months ended June 30, 2025, we recognized total revenues of $22.50 billion and $41.83 billion, respectively, representing decreases of $3.00 billion and $4.97 billion, respectively, compared to the same periods in the prior year.

Current filing · verify on EDGAR →

During the three and six months ended June 30, 2026, we recognized total revenues of $28.24 billion and $50.62 billion, respectively, representing increases of $5.74 billion and $8.79 billion, respectively, compared to the same periods in the prior year.

Net income (Q2 and H1 2026 vs 2025) MD&A

Prior filing · verify on EDGAR →

During the three and six months ended June 30, 2025, our net income attributable to common stockholders was $1.17 billion and $1.58 billion, respectively, representing decreases of $228 million and $1.21 billion, respectively, compared to the same periods in the prior year.

Current filing · verify on EDGAR →

During the three and six months ended June 30, 2026, our net income attributable to common stockholders was $1.11 billion and $1.59 billion, respectively, representing a decrease of $58 million and an increase of $10 million, respectively, compared to the same periods in the prior year.

Cash and investments MD&A

Prior filing · verify on EDGAR →

We ended the second quarter of 2025 with $36.78 billion in cash and cash equivalents and investments, representing an increase of $219 million from the end of 2024.

Current filing · verify on EDGAR →

We ended the second quarter of 2026 with $43.52 billion in cash and cash equivalents and short-term investments, representing a decrease of $535 million from the end of 2025.

Operating cash flow MD&A

Prior filing · verify on EDGAR →

Our cash flows provided by operating activities were $4.70 billion during the six months ended June 30, 2025, compared to $3.85 billion during the same period ended June 30, 2024, representing an increase of $842 million.

Current filing · verify on EDGAR →

Our cash flows provided by operating activities were $8.63 billion during the six months ended June 30, 2026, compared to $4.70 billion during the same period ended June 30, 2025, representing an increase of $3.94 billion.

Capital expenditures MD&A

Prior filing · verify on EDGAR →

Capital expenditures amounted to $3.89 billion during the six months ended June 30, 2025, compared to $5.05 billion during the same period ended June 30, 2024, representing a decrease of $1.16 billion.

Current filing · verify on EDGAR →

Capital expenditures amounted to $8.28 billion during the six months ended June 30, 2026, compared to $3.89 billion during the same period ended June 30, 2025, representing an increase of $4.40 billion.

Full-year 2026 capex guidance MD&A

Prior filing · verify on EDGAR →

we currently expect our capital expenditures to exceed $9.00 billion in 2025.

Current filing · verify on EDGAR →

We currently expect our capital expenditures to be in excess of $25 billion in 2026, driven by our AI initiatives, including investments in compute infrastructure and data centers, the expansion and ramp of our manufacturing and R&D production lines and facilities, and growth in our fleet of company-operated AI-enabled assets and our retail, service and charging footprint.

Energy storage deployments MD&A

Prior filing · verify on EDGAR →

In 2025, we deployed 20.0 GWh of energy storage products through the second quarter.

Current filing · verify on EDGAR →

In 2026, we deployed 22.3 GWh of energy storage products through the second quarter.

Vehicle production and deliveries MD&A

Prior filing · verify on EDGAR →

In 2025, we produced approximately 773,000 consumer vehicles and delivered approximately 721,000 consumer vehicles through the second quarter.

Current filing · verify on EDGAR →

In 2026, we produced approximately 860 thousand consumer vehicles and delivered approximately 838 thousand consumer vehicles through the second quarter.

Automotive sales revenue (Q2 and H1) MD&A

Prior filing · verify on EDGAR →

Automotive sales revenue decreased $2.74 billion, or 15%, in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, due to a decrease of approximately 45,000 combined Model 3 and Model Y cash deliveries and a decrease of approximately 12,000 deliveries of other models. Additionally, we had a lower average selling price per unit driven by sales mix. Automotive sales revenue decreased $6.28 billion, or 18%, in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, due to a decrease of approximately 95,000 combined Model 3 and Model Y cash deliveries in part from bringing down all of our vehicle factories simultaneously for the changeover to New Model Y and a decrease of approximately 16,000 deliveries of other models. Additionally, we had a lower average selling price per unit driven by sales mix and higher customer incentives such as attractive financing options.

Current filing · verify on EDGAR →

Automotive sales revenue increased $4.22 billion, or 27%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, due to an increase of approximately 25% in cash deliveries. Automotive sales revenue increased $6.77 billion, or 24%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, due to an increase of approximately 18% in cash deliveries, in part from bringing down all of our vehicle factories simultaneously for the changeover to the New Model Y in the prior period. Additionally, there was a higher average selling price per unit primarily driven by sales mix and a positive impact from the weakening of the United States dollar when compared to foreign currencies year over year and an increase from higher revenue from FSD (Supervised) subscriptions in the current period.

Regulatory credits revenue MD&A

Prior filing · verify on EDGAR →

Automotive regulatory credits revenue decreased $451 million, or 51%, in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. Automotive regulatory credits revenue decreased $298 million, or 22%, in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. Fluctuations in automotive regulatory credits are impacted by our supply of credits, subject to changes in regulation, production and sales. Furthermore, we are impacted by the demand for credits by other automobile manufacturers.

Current filing · verify on EDGAR →

Automotive regulatory credits revenue decreased $293 million, or 67%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Automotive regulatory credits revenue decreased $508 million, or 49%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Fluctuations in automotive regulatory credits are impacted by our supply of credits, subject to changes in regulation, production and sales. Recent governmental and regulatory actions have restricted certain regulatory credit programs tied to our products. Furthermore, we are impacted by the demand for credits by other automobile manufacturers.

Services and other revenue MD&A

Prior filing · verify on EDGAR →

Services and other revenue increased $438 million, or 17%, in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. Services and other revenue increased $788 million, or 16%, in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The increases were primarily due to increases in paid Supercharging revenue, non-warranty maintenance services and collision revenue, insurance services revenue, used vehicle revenue and part sales revenue.

Current filing · verify on EDGAR →

Services and other revenue increased $1.54 billion, or 50%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Services and other revenue increased $2.64 billion, or 46%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. These increases were primarily due to increases in used vehicle sales volume and average selling price, non-warranty maintenance services and collision revenue and paid Supercharging sessions.

Energy generation and storage revenue MD&A

Prior filing · verify on EDGAR →

Energy generation and storage revenue decreased $225 million, or 7%, in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to a decrease in average selling price of Megapack, partially offset by an increase in Powerwall deployments compared to the prior year.

Current filing · verify on EDGAR →

Energy generation and storage revenue increased $350 million, or 13%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to an increase in Megapack deployments, partially offset by a lower average selling price per Megapack unit and a decrease in Powerwall deployments.

Automotive gross margin MD&A

Prior filing · verify on EDGAR →

Gross margin for total automotive decreased from 18.5% to 17.2% in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 primarily due to a decrease in regulatory credits revenue, as discussed above. Gross margin for total automotive decreased from 18.5% to 16.8% in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 primarily due to lower average selling price per unit and a decrease in regulatory credits revenue as described above.

Current filing · verify on EDGAR →

Gross margin for total automotive decreased from 17.2% to 16.9% in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Gross margin for total automotive increased from 16.8% to 18.7% in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. The fluctuations are primarily due to the changes in automotive sales revenue and cost of automotive sales revenue and a decrease in regulatory credits revenue, as discussed above.

Energy generation and storage gross margin MD&A

Prior filing · verify on EDGAR →

Gross margin for energy generation and storage increased from 24.6% to 30.3% in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. Gross margin for energy generation and storage increased from 24.6% to 29.6% in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The increases were primarily due to a decrease in average cost per unit for Megapack and Powerwall, partially offset by a decrease in average selling price of Megapack.

Current filing · verify on EDGAR →

Gross margin for energy generation and storage decreased from 30.3% to 20.4% in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. The decrease was primarily due to the changes in energy generation and storage revenue and cost of energy generation and storage revenue, as discussed above.

R&D expense MD&A

Prior filing · verify on EDGAR →

Research and development (“R&D”) expenses increased $515 million, or 48%, in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. R&D expenses increased $773 million, or 35%, in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. These increases were primarily due to increases in costs related to AI and other programs as we continue to expand our product roadmap and technologies. Additionally, there were increases in stock-based compensation of $129 million and $194 million in the three and six months ended June 30, 2025 as compared to the same periods ended June 30, 2024, respectively.

Current filing · verify on EDGAR →

Research and development (“R&D”) expenses increased $782 million, or 49%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. R&D expenses increased $1.32 billion, or 44%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. These increases were primarily due to increases in costs related to AI and other programs as we continue to expand our product roadmap and technologies and increases in stock-based compensation of $189 million and $334 million, respectively.

Other income, net MD&A

Prior filing · verify on EDGAR →

Other income (expense), net, changed favorably by $400 million in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. Other income (expense), net, changed unfavorably by $162 million in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The changes are due to mark-to-market on our bitcoin digital assets and fluctuations in foreign currency exchange rates on our intercompany balances.

Current filing · verify on EDGAR →

Other income, net, changed favorably by $270 million in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Other income, net, changed unfavorably by $146 million in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. The changes were primarily due to a mark-to-market gain on our SpaceX equity investment, which we entered into in March 2026, and adjustments on our bitcoin digital assets, as well as fluctuations in foreign currency exchange rates on our intercompany balances.

Provision for income taxes and effective tax rate MD&A

Prior filing · verify on EDGAR →

Our provision for income taxes decreased by $12 million in the three months ended June 30, 2025 and decreased by $326 million in the six months ended June 30, 2025 as compared to the three and six months ended June 30, 2024, respectively, primarily due to the change in our pre-tax income year over year. Our effective tax rate increased from 21% to 23% in the three months ended June 30, 2025 and increased from 23% to 25% in the six months ended June 30, 2025 as compared to the three and six months ended June 30, 2024, respectively, primarily due to the changes in the mix of our jurisdictional earnings.

Current filing · verify on EDGAR →

During the three months ended June 30, 2026, following the enactment of California Senate Bill 122 (SB 122) into law and based on the relevant weight of positive and negative evidence, including the consideration of our expected California tax liabilities, we concluded that it is more likely than not that our California deferred tax assets, other than research and development tax credits, are realizable. Accordingly, we released the valuation allowance related to these California deferred tax assets. The release of this valuation allowance and an immaterial accrual of pillar two tax resulted in a $274 million income tax benefit that was included in our provision for income taxes for the three and six months ended June 30, 2026. Our provision for income taxes decreased by $158 million in the three months ended June 30, 2026 and by $70 million in the six months ended June 30, 2026 as compared to the three and six months ended June 30, 2025, respectively. Our effective tax rate decreased from 23% to 15% in the three months ended June 30, 2026 and from 25% to 22% in the six months ended June 30, 2026 as compared to the three and six months ended June 30, 2025, respectively. The decreases in our provision for income taxes and effective tax rates were primarily due to the release of the valuation allowance on our California deferred tax assets other than research and development tax credits and changes in the mix of our jurisdictional earnings, partially offset by the non-deductibility of stock-based compensation expense related to the 2025 CEO Performance Award.

Debt outstanding MD&A

Prior filing · verify on EDGAR →

As of June 30, 2025, we and our subsidiaries had outstanding $6.98 billion in aggregate principal amount of indebtedness, of which $1.97 billion is current.

Current filing · verify on EDGAR →

As of June 30, 2026, we and our subsidiaries had outstanding $9.08 billion in aggregate principal amount of indebtedness, of which $1.35 billion is current.

Cash flows from financing activities MD&A

Prior filing · verify on EDGAR →

Net cash flows from financing activities changed by $3.29 billion to $554 million net cash outflows during the six months ended June 30, 2025 from $2.74 billion net cash inflows during the six months ended June 30, 2024. The decrease was primarily due to a $2.91 billion increase in repayments of debt and a $845 million decrease in proceeds from issuances of debt.

Current filing · verify on EDGAR →

Net cash flows from financing activities changed by $1.76 billion to $1.21 billion net cash inflows during the six months ended June 30, 2026 from $554 million net cash outflows during the six months ended June 30, 2025. The change was primarily due to a $1.63 billion increase in proceeds from issuances of debt and a $207 million decrease in repayments of debt.

5 key changes 5 high relevance 2 red flags 4 sections

Key Changes

Summary

Tesla's Q2 2026 results show a company in the midst of a capital-intensive pivot toward AI and robotics. Revenue grew 26% to $28.2B and net income attributable to common stockholders was $1.12B (down 5% YoY, diluted EPS $0.32, down 5%), but operating income fell 57% to $398M as R&D and SG&A surged to fund AI initiatives.

The company reframed its mission from 'accelerate the world's transition to sustainable energy' to 'bringing artificial intelligence into the real world,' positioning FSD, Robotaxi, and Optimus as the primary strategic focus. Cybercab entered production in H1 2026, the Robotaxi service launched in June 2025 is expanding, and Tesla is preparing for large-scale Optimus production.

The AI pivot is expensive: full-year 2026 capex guidance jumped to >$25B (from >$9B in 2025), driven by compute infrastructure, data centers, and AI-enabled fleet expansion. H1 2026 capex was $8.28B, up 113% YoY. Stock-based compensation rose 81% to $2.18B in H1 2026, driven by the 2025 CEO Performance Award ($527M in H1 2026 expense, with $9.82B unrecognized over 9.2 years for the one probable milestone). The company disclosed it 'may include additional funding' to support AI, semiconductor, Optimus, and solar investments. Tesla also invested $2.00B in SpaceX common stock in March 2026, which appreciated to ~$3.0B by quarter-end, contributing a $1.0B unrealized gain to Other income. Automotive gross margin was 16.9% (down 30 bps YoY in Q2, up 190 bps in H1), and energy storage gross margin fell to 20.4% (from 30.3% in Q2 2025) on higher costs and lower Megapack ASP. Two new legal actions emerged: a $329M Autopilot product liability verdict (appealed, immaterial accrual) and a new securities class action alleging FSD/Robotaxi misrepresentations.

Section-by-Section Diff

MD&A

~7,400 words (+5% vs prior)

Revenue +26% YoY; operating income -57%; capex guidance raised to >$25B (from >$9B) for AI/compute infrastructure; Robotaxi service launched Jun 2025.

8 Added 1 Removed 3 Modified 19 Numbers
Substantive Edit Mission / strategic focus high

Previous filing · verify on EDGAR →

Our mission is to accelerate the world’s transition to sustainable energy. We design, develop, manufacture, lease and sell high-performance fully electric vehicles, solar energy generation systems and energy storage products. We also offer maintenance, installation, operation, charging, insurance, financial and other services related to our products. Additionally, we are increasingly focused on products and services based on AI, robotics and automation.

Current filing · verify on EDGAR →

We are focused on bringing artificial intelligence into the real world, through products and services like FSD (Supervised) and Robotaxi, as well as working to develop and commercialize AI robots (including Optimus). We intend to leverage our current operations, in which we design, develop, manufacture, sell and lease high-performance fully electric vehicles and energy generation and storage systems that increasingly deliver AI-related and enhanced software and services to our customers, to achieve that objective.

The company reframed its mission from "accelerate the world's transition to sustainable energy" to "bringing artificial intelligence into the real world," explicitly positioning AI, FSD, Robotaxi, and Optimus as the primary strategic focus. The sustainable-energy mission is now described as a means to that AI objective rather than the end goal itself.

Substantive Edit Robotaxi service launch high

Previous filing · verify on EDGAR →

In June 2025, we launched our Robotaxi service in Austin, capitalizing on our AI investments and scalable mobility infrastructure to advance a service-driven business model.

Current filing · verify on EDGAR →

We have continued to expand and refine our Robotaxi service after its June 2025 launch, capitalizing on our AI investments and scalable mobility infrastructure to advance a service-driven business model.

The current filing describes the Robotaxi service as an ongoing, expanding operation ("continued to expand and refine") rather than a just-launched pilot. This reflects operational progress since the June 2025 launch mentioned in the baseline.

Added Cybercab production ramp high

Added in current filing · verify on EDGAR →

In the first half of 2026, we made significant progress towards these objectives as we began production of Cybercab, as well as ramps across our new battery and material factories, including cathode material and lithium refining in Texas.

The company disclosed that Cybercab (the purpose-built Robotaxi vehicle) entered production in H1 2026, alongside new battery and material factory ramps in Texas. This is a new manufacturing milestone not present in the baseline.

Added Optimus development and production plans medium

Added in current filing · verify on EDGAR →

We are also capitalizing on our strengths in real-world AI data to advance the development of Optimus, a general purpose, autonomous humanoid robot, as we make preparations and investments in large-scale production.

The current filing explicitly discusses Optimus (humanoid robot) development and large-scale production preparations, a topic absent from the baseline's production section. This signals a new product line entering the investment and manufacturing roadmap.

Number Change Revenue (Q2 and H1 2026 vs 2025) high

Previous filing · verify on EDGAR →

During the three and six months ended June 30, 2025, we recognized total revenues of $22.50 billion and $41.83 billion, respectively, representing decreases of $3.00 billion and $4.97 billion, respectively, compared to the same periods in the prior year.

Current filing · verify on EDGAR →

During the three and six months ended June 30, 2026, we recognized total revenues of $28.24 billion and $50.62 billion, respectively, representing increases of $5.74 billion and $8.79 billion, respectively, compared to the same periods in the prior year.

Q2 2026 revenue was $28.24B (+26% YoY) vs Q2 2025 $22.50B (-12% YoY). H1 2026 revenue was $50.62B (+21% YoY) vs H1 2025 $41.83B (-11% YoY). The company returned to strong revenue growth after a year-over-year decline in the prior period.

Number Change Net income (Q2 and H1 2026 vs 2025) high

Previous filing · verify on EDGAR →

During the three and six months ended June 30, 2025, our net income attributable to common stockholders was $1.17 billion and $1.58 billion, respectively, representing decreases of $228 million and $1.21 billion, respectively, compared to the same periods in the prior year.

Current filing · verify on EDGAR →

During the three and six months ended June 30, 2026, our net income attributable to common stockholders was $1.11 billion and $1.59 billion, respectively, representing a decrease of $58 million and an increase of $10 million, respectively, compared to the same periods in the prior year.

Q2 2026 net income was $1.11B (down $58M YoY) vs Q2 2025 $1.17B (down $228M YoY). H1 2026 net income was $1.59B (up $10M YoY) vs H1 2025 $1.58B (down $1.21B YoY). Profitability stabilized but did not grow proportionally with revenue, reflecting higher R&D and SG&A spend.

Number Change Cash and investments medium

Previous filing · verify on EDGAR →

We ended the second quarter of 2025 with $36.78 billion in cash and cash equivalents and investments, representing an increase of $219 million from the end of 2024.

Current filing · verify on EDGAR →

We ended the second quarter of 2026 with $43.52 billion in cash and cash equivalents and short-term investments, representing a decrease of $535 million from the end of 2025.

Cash and investments grew from $36.78B (Q2 2025) to $43.52B (Q2 2026), an increase of $6.74B year-over-year, despite a $535M sequential decline from year-end 2025. The company maintains a strong liquidity position.

Number Change Operating cash flow high

Previous filing · verify on EDGAR →

Our cash flows provided by operating activities were $4.70 billion during the six months ended June 30, 2025, compared to $3.85 billion during the same period ended June 30, 2024, representing an increase of $842 million.

Current filing · verify on EDGAR →

Our cash flows provided by operating activities were $8.63 billion during the six months ended June 30, 2026, compared to $4.70 billion during the same period ended June 30, 2025, representing an increase of $3.94 billion.

H1 2026 operating cash flow was $8.63B, up $3.94B (+84%) from H1 2025's $4.70B. This reflects improved working capital management and higher revenue, supporting the company's self-funding narrative.

Number Change Capital expenditures high

Previous filing · verify on EDGAR →

Capital expenditures amounted to $3.89 billion during the six months ended June 30, 2025, compared to $5.05 billion during the same period ended June 30, 2024, representing a decrease of $1.16 billion.

Current filing · verify on EDGAR →

Capital expenditures amounted to $8.28 billion during the six months ended June 30, 2026, compared to $3.89 billion during the same period ended June 30, 2025, representing an increase of $4.40 billion.

H1 2026 capex was $8.28B, up $4.40B (+113%) from H1 2025's $3.89B. The company is investing heavily in AI infrastructure, compute, and manufacturing expansion, reversing the prior-year decline.

Number Change Full-year 2026 capex guidance high

Previous filing · verify on EDGAR →

we currently expect our capital expenditures to exceed $9.00 billion in 2025.

Current filing · verify on EDGAR →

We currently expect our capital expenditures to be in excess of $25 billion in 2026, driven by our AI initiatives, including investments in compute infrastructure and data centers, the expansion and ramp of our manufacturing and R&D production lines and facilities, and growth in our fleet of company-operated AI-enabled assets and our retail, service and charging footprint.

Full-year capex guidance increased from >$9B (2025) to >$25B (2026), a nearly 3x increase. The company is prioritizing AI compute infrastructure, data centers, and AI-enabled fleet expansion over traditional manufacturing capex.

Added Potential need for additional funding medium

Added in current filing · verify on EDGAR →

As we make critical high-value investments in our AI initiatives and expand manufacturing capabilities, including for our semiconductor, Optimus and solar operations, we intend to manage the business such that we maintain a strong balance sheet and sufficient liquidity, which may include additional funding.

The current filing explicitly states that the company "may include additional funding" to support AI, semiconductor, Optimus, and solar investments. This is a new disclosure not present in the baseline, which only mentioned the possibility of raising capital in general terms.

Added Cortex AI training cluster expansion medium

Added in current filing · verify on EDGAR →

We continue to expand Cortex, our onsite training clusters at Gigafactory Texas, to provide sufficient compute resources for the development of our AI products and services, and are expanding our scope of manufacturing to include semiconductor and solar fabrication.

The company disclosed Cortex, an onsite AI training cluster at Gigafactory Texas, and announced expansion into semiconductor and solar fabrication. This is a new infrastructure and vertical-integration initiative not mentioned in the baseline.

Number Change Energy storage deployments medium

Previous filing · verify on EDGAR →

In 2025, we deployed 20.0 GWh of energy storage products through the second quarter.

Current filing · verify on EDGAR →

In 2026, we deployed 22.3 GWh of energy storage products through the second quarter.

H1 2026 energy storage deployments were 22.3 GWh, up 2.3 GWh (+12%) from H1 2025's 20.0 GWh. The company is growing this segment despite tariff headwinds.

Number Change Vehicle production and deliveries high

Previous filing · verify on EDGAR →

In 2025, we produced approximately 773,000 consumer vehicles and delivered approximately 721,000 consumer vehicles through the second quarter.

Current filing · verify on EDGAR →

In 2026, we produced approximately 860 thousand consumer vehicles and delivered approximately 838 thousand consumer vehicles through the second quarter.

H1 2026 production was ~860k vehicles (+87k, +11% YoY) and deliveries were ~838k (+117k, +16% YoY) vs H1 2025. The company returned to volume growth after the prior-year Model Y changeover disruption.

Number Change Automotive sales revenue (Q2 and H1) high

Previous filing · verify on EDGAR →

Automotive sales revenue decreased $2.74 billion, or 15%, in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, due to a decrease of approximately 45,000 combined Model 3 and Model Y cash deliveries and a decrease of approximately 12,000 deliveries of other models. Additionally, we had a lower average selling price per unit driven by sales mix. Automotive sales revenue decreased $6.28 billion, or 18%, in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, due to a decrease of approximately 95,000 combined Model 3 and Model Y cash deliveries in part from bringing down all of our vehicle factories simultaneously for the changeover to New Model Y and a decrease of approximately 16,000 deliveries of other models. Additionally, we had a lower average selling price per unit driven by sales mix and higher customer incentives such as attractive financing options.

Current filing · verify on EDGAR →

Automotive sales revenue increased $4.22 billion, or 27%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, due to an increase of approximately 25% in cash deliveries. Automotive sales revenue increased $6.77 billion, or 24%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, due to an increase of approximately 18% in cash deliveries, in part from bringing down all of our vehicle factories simultaneously for the changeover to the New Model Y in the prior period. Additionally, there was a higher average selling price per unit primarily driven by sales mix and a positive impact from the weakening of the United States dollar when compared to foreign currencies year over year and an increase from higher revenue from FSD (Supervised) subscriptions in the current period.

Q2 2026 automotive sales revenue was up 27% YoY (vs down 15% in Q2 2025). H1 2026 was up 24% YoY (vs down 18% in H1 2025). The company reversed the prior-year decline, driven by higher deliveries, improved ASP from sales mix and FX, and FSD subscription revenue growth.

Number Change Regulatory credits revenue high

Previous filing · verify on EDGAR →

Automotive regulatory credits revenue decreased $451 million, or 51%, in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. Automotive regulatory credits revenue decreased $298 million, or 22%, in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. Fluctuations in automotive regulatory credits are impacted by our supply of credits, subject to changes in regulation, production and sales. Furthermore, we are impacted by the demand for credits by other automobile manufacturers.

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Automotive regulatory credits revenue decreased $293 million, or 67%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Automotive regulatory credits revenue decreased $508 million, or 49%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Fluctuations in automotive regulatory credits are impacted by our supply of credits, subject to changes in regulation, production and sales. Recent governmental and regulatory actions have restricted certain regulatory credit programs tied to our products. Furthermore, we are impacted by the demand for credits by other automobile manufacturers.

Q2 2026 regulatory credits revenue fell 67% YoY to $146M (vs 51% decline in Q2 2025). H1 2026 fell 49% to $526M (vs 22% decline in H1 2025). The company attributed the accelerated decline to "recent governmental and regulatory actions" restricting credit programs, a new disclosure not in the baseline.

Number Change Services and other revenue medium

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Services and other revenue increased $438 million, or 17%, in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. Services and other revenue increased $788 million, or 16%, in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The increases were primarily due to increases in paid Supercharging revenue, non-warranty maintenance services and collision revenue, insurance services revenue, used vehicle revenue and part sales revenue.

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Services and other revenue increased $1.54 billion, or 50%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Services and other revenue increased $2.64 billion, or 46%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. These increases were primarily due to increases in used vehicle sales volume and average selling price, non-warranty maintenance services and collision revenue and paid Supercharging sessions.

Q2 2026 services revenue grew 50% YoY (vs 17% in Q2 2025). H1 2026 grew 46% (vs 16% in H1 2025). The company is scaling used-vehicle sales, Supercharging, and maintenance services at an accelerating rate.

Number Change Energy generation and storage revenue medium

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Energy generation and storage revenue decreased $225 million, or 7%, in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to a decrease in average selling price of Megapack, partially offset by an increase in Powerwall deployments compared to the prior year.

Current filing · verify on EDGAR →

Energy generation and storage revenue increased $350 million, or 13%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily due to an increase in Megapack deployments, partially offset by a lower average selling price per Megapack unit and a decrease in Powerwall deployments.

Q2 2026 energy revenue grew 13% YoY (vs down 7% in Q2 2025). The company returned to growth driven by higher Megapack deployments, despite lower ASP and a Powerwall deployment decline.

Number Change Automotive gross margin high

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Gross margin for total automotive decreased from 18.5% to 17.2% in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 primarily due to a decrease in regulatory credits revenue, as discussed above. Gross margin for total automotive decreased from 18.5% to 16.8% in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 primarily due to lower average selling price per unit and a decrease in regulatory credits revenue as described above.

Current filing · verify on EDGAR →

Gross margin for total automotive decreased from 17.2% to 16.9% in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Gross margin for total automotive increased from 16.8% to 18.7% in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. The fluctuations are primarily due to the changes in automotive sales revenue and cost of automotive sales revenue and a decrease in regulatory credits revenue, as discussed above.

Q2 2026 automotive gross margin was 16.9% (down 30 bps YoY). H1 2026 was 18.7% (up 190 bps YoY). The H1 improvement reflects higher ASP, favorable FX, and warranty adjustments, partially offset by lower regulatory credits.

Number Change Energy generation and storage gross margin medium

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Gross margin for energy generation and storage increased from 24.6% to 30.3% in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. Gross margin for energy generation and storage increased from 24.6% to 29.6% in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The increases were primarily due to a decrease in average cost per unit for Megapack and Powerwall, partially offset by a decrease in average selling price of Megapack.

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Gross margin for energy generation and storage decreased from 30.3% to 20.4% in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. The decrease was primarily due to the changes in energy generation and storage revenue and cost of energy generation and storage revenue, as discussed above.

Q2 2026 energy gross margin fell to 20.4% from 30.3% in Q2 2025, driven by higher average cost per MWh (sales mix and unfavorable warranty adjustments) and lower Megapack ASP. This reverses the prior-year margin expansion.

Number Change R&D expense medium

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Research and development (“R&D”) expenses increased $515 million, or 48%, in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. R&D expenses increased $773 million, or 35%, in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. These increases were primarily due to increases in costs related to AI and other programs as we continue to expand our product roadmap and technologies. Additionally, there were increases in stock-based compensation of $129 million and $194 million in the three and six months ended June 30, 2025 as compared to the same periods ended June 30, 2024, respectively.

Current filing · verify on EDGAR →

Research and development (“R&D”) expenses increased $782 million, or 49%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. R&D expenses increased $1.32 billion, or 44%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. These increases were primarily due to increases in costs related to AI and other programs as we continue to expand our product roadmap and technologies and increases in stock-based compensation of $189 million and $334 million, respectively.

Q2 2026 R&D was up 49% YoY (vs 48% in Q2 2025). H1 2026 was up 44% (vs 35% in H1 2025). The company is accelerating AI and product-roadmap investments, with stock-based compensation also rising.

Added SG&A expense medium

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Selling, general and administrative (“SG&A”) expenses increased $616 million, or 45%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, driven by a $283 million increase in stock-based compensation primarily related to the 2025 CEO Performance Award, a $134 million increase in employee and labor costs, including professional services, a $109 million increase in operating expenses including litigation related expenses and a $68 million increase in facilities related expenses. SG&A expenses increased $1.20 billion, or 46%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, driven by a $577 million increase in stock-based compensation primarily related to the 2025 CEO Performance Award, a $273 million increase in employee and labor costs, including professional services, a $196 million increase in operating expenses including litigation related expenses and a $131 million increase in facilities related expenses.

Q2 2026 SG&A was up 45% YoY, driven by $283M in CEO Performance Award stock-based compensation, $134M in labor costs, $109M in litigation expenses, and $68M in facilities. H1 2026 was up 46%, with $577M in CEO award SBC, $273M in labor, $196M in litigation, and $131M in facilities. The baseline did not break out SG&A drivers in this level of detail.

Number Change Other income, net medium

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Other income (expense), net, changed favorably by $400 million in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. Other income (expense), net, changed unfavorably by $162 million in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The changes are due to mark-to-market on our bitcoin digital assets and fluctuations in foreign currency exchange rates on our intercompany balances.

Current filing · verify on EDGAR →

Other income, net, changed favorably by $270 million in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Other income, net, changed unfavorably by $146 million in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. The changes were primarily due to a mark-to-market gain on our SpaceX equity investment, which we entered into in March 2026, and adjustments on our bitcoin digital assets, as well as fluctuations in foreign currency exchange rates on our intercompany balances.

Q2 2026 other income was up $270M YoY (vs up $400M in Q2 2025). H1 2026 was down $146M (vs down $162M in H1 2025). The current period includes a new SpaceX equity investment (entered March 2026) with mark-to-market gains, alongside bitcoin and FX volatility.

Added SpaceX equity investment high

Added in current filing · verify on EDGAR →

we invested $2.00 billion in SpaceX common stock during the six months ended June 30, 2026. Refer to Note 13, Related Party Transactions, for additional information regarding the equity investment.

The company disclosed a $2.00B equity investment in SpaceX common stock in H1 2026, a new related-party transaction not present in the baseline. This is a material capital allocation decision.

Number Change Provision for income taxes and effective tax rate medium

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Our provision for income taxes decreased by $12 million in the three months ended June 30, 2025 and decreased by $326 million in the six months ended June 30, 2025 as compared to the three and six months ended June 30, 2024, respectively, primarily due to the change in our pre-tax income year over year. Our effective tax rate increased from 21% to 23% in the three months ended June 30, 2025 and increased from 23% to 25% in the six months ended June 30, 2025 as compared to the three and six months ended June 30, 2024, respectively, primarily due to the changes in the mix of our jurisdictional earnings.

Current filing · verify on EDGAR →

During the three months ended June 30, 2026, following the enactment of California Senate Bill 122 (SB 122) into law and based on the relevant weight of positive and negative evidence, including the consideration of our expected California tax liabilities, we concluded that it is more likely than not that our California deferred tax assets, other than research and development tax credits, are realizable. Accordingly, we released the valuation allowance related to these California deferred tax assets. The release of this valuation allowance and an immaterial accrual of pillar two tax resulted in a $274 million income tax benefit that was included in our provision for income taxes for the three and six months ended June 30, 2026. Our provision for income taxes decreased by $158 million in the three months ended June 30, 2026 and by $70 million in the six months ended June 30, 2026 as compared to the three and six months ended June 30, 2025, respectively. Our effective tax rate decreased from 23% to 15% in the three months ended June 30, 2026 and from 25% to 22% in the six months ended June 30, 2026 as compared to the three and six months ended June 30, 2025, respectively. The decreases in our provision for income taxes and effective tax rates were primarily due to the release of the valuation allowance on our California deferred tax assets other than research and development tax credits and changes in the mix of our jurisdictional earnings, partially offset by the non-deductibility of stock-based compensation expense related to the 2025 CEO Performance Award.

Q2 2026 effective tax rate fell to 15% (from 23% in Q2 2025) due to a $274M benefit from releasing the California deferred tax asset valuation allowance following enactment of SB 122. H1 2026 rate was 22% (from 25% in H1 2025). The baseline showed rising rates; the current period shows a material one-time benefit.

Number Change Debt outstanding medium

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As of June 30, 2025, we and our subsidiaries had outstanding $6.98 billion in aggregate principal amount of indebtedness, of which $1.97 billion is current.

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As of June 30, 2026, we and our subsidiaries had outstanding $9.08 billion in aggregate principal amount of indebtedness, of which $1.35 billion is current.

Total debt outstanding increased from $6.98B (Q2 2025) to $9.08B (Q2 2026), an increase of $2.10B. Current portion decreased from $1.97B to $1.35B. The company raised additional debt to fund capex and operations.

Number Change Cash flows from financing activities medium

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Net cash flows from financing activities changed by $3.29 billion to $554 million net cash outflows during the six months ended June 30, 2025 from $2.74 billion net cash inflows during the six months ended June 30, 2024. The decrease was primarily due to a $2.91 billion increase in repayments of debt and a $845 million decrease in proceeds from issuances of debt.

Current filing · verify on EDGAR →

Net cash flows from financing activities changed by $1.76 billion to $1.21 billion net cash inflows during the six months ended June 30, 2026 from $554 million net cash outflows during the six months ended June 30, 2025. The change was primarily due to a $1.63 billion increase in proceeds from issuances of debt and a $207 million decrease in repayments of debt.

H1 2026 financing cash flow was +$1.21B (vs -$554M in H1 2025), driven by $1.63B more debt issuance proceeds and $207M less debt repayments. The company is raising debt to fund capex, reversing the prior-year net-outflow pattern.

Added New energy storage products (Megapack 3, Megablock, retrofit solar panel) medium

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In 2025, we introduced Megapack 3 and Megablock, our next-generation industrial storage product, and began manufacturing a new residential retrofit solar panel.

The current filing disclosed three new energy products introduced in 2025: Megapack 3, Megablock (next-gen industrial storage), and a residential retrofit solar panel. These are new product launches not mentioned in the baseline.

Show 3 minor / wording changes
Removed Restructuring and other expense low

Removed from previous filing · verify on EDGAR →

In the second quarter of 2024, we initiated and substantially completed certain restructuring actions to reduce costs and improve efficiency. As a result, we recognized $583 million of employee termination expenses in Restructuring and other in our consolidated statement of operations during the three months ended June 30, 2024.

The baseline disclosed a $583M Q2 2024 restructuring charge (employee terminations). The current filing contains no restructuring line item or discussion, indicating the restructuring was a one-time event in the prior year and is no longer recurring.

Substantive Edit OBBBA impact disclosure low

Previous filing · verify on EDGAR → · paraphrased

For instance, the recently announced import tariffs by the US government and the provisions of the OBBBA could significantly increase battery cell expenses and impact costs for our consumers, negatively impacting consumer demand. Furthermore, certain provisions of the recently signed OBBBA, including the removal of tax credits for electric vehicles, may also impact consumer demand for electric vehicles in general once effective.

Current filing · verify on EDGAR →

For instance, import tariffs by the US government and the provisions of the OBBBA could significantly increase battery cell expenses and impact costs for our consumers, negatively impacting consumer demand.

The current filing removed the specific reference to "removal of tax credits for electric vehicles" from the OBBBA discussion, retaining only the general battery-cell cost impact. This may reflect that the tax-credit removal is now in effect or no longer a forward-looking risk.

Added Megacharger deployment for Tesla Semi low

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We have also begun deploying public Megachargers in preparation for the production of Tesla Semi.

The company disclosed that it has begun deploying public Megachargers for Tesla Semi, a new infrastructure initiative not mentioned in the baseline. This signals progress toward Semi production ramp.

Notes

~15,200 words (+17% vs prior)

New CEO equity awards, SpaceX investment, California tax valuation release, tariff refund disclosure, and expanded litigation updates.

11 Added 12 Removed 6 Modified
Added 2025 CEO Interim Award forfeiture high

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Following the Delaware Supreme Court’s decision reversing the Court of Chancery’s rescission order and reinstating the performance-based stock option award our CEO was granted by the Company on January 21, 2018 (the “2018 CEO Performance Award”), on March 18, 2026 the Court of Chancery entered a final order implementing such reversal. On April 21, 2026 the Board approved the determination that the final order and judgment allowing our CEO to exercise the 2018 CEO Performance Award in full constituted a Tornetta Decision Event (as defined in the restricted stock award granted to our CEO on August 3, 2025 (the “2025 CEO Interim Award”), resulting in the immediate forfeiture of the 96 million shares associated with the 2025 CEO Interim Award. These actions are consistent with the “no double dip” principle, which precludes Mr. Musk from getting a windfall in the event that he may exercise the 2018 CEO Performance Award. No stock-based compensation expense was recognized related to the 2025 CEO Interim Award prior to the forfeiture.

The 2025 CEO Interim Award (96 million shares granted August 2025) was forfeited in April 2026 after the Delaware Supreme Court reinstated the 2018 CEO Performance Award. The forfeiture prevents double compensation and had no P&L impact because no expense had been recognized on the interim award.

Added 2026 Implementation Agreement for 2018 CEO Performance Award high

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On April 21, 2026 (the “effective date”), the Board approved the Company’s entry into an agreement with our CEO (the “Implementation Agreement”) implementing a process for our CEO’s exercise of the 2018 CEO Performance Award. During the quarter ended June 30, 2026, our CEO exercised approximately 304.0 million of the stock options underlying the 2018 CEO Performance Award and elected to net settle the exercise price of his options, which amounted to approximately 17.5 million shares. The Implementation Agreement imposed a service-based vesting condition on the restricted shares of common stock (the “Restricted Shares”) issued to our CEO upon exercise of the 2018 CEO Performance Award, requiring him to remain in continuous service as CEO or as an executive officer responsible for product development or operations (as approved by the Board’s disinterested directors) through January 19, 2028 (the “scheduled vesting date”), and commences a five-year holding period on the date the Restricted Shares vest (except in the case of death).

The CEO exercised approximately 304 million stock options from the 2018 award in Q2 2026, net-settling 17.5 million shares for the exercise price. The Implementation Agreement adds a service condition (CEO must remain through January 2028) and a five-year post-vesting holding period. No incremental stock-based compensation expense will be recorded because the original award was already fully expensed.

Added 2025 CEO Performance Award high

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On September 3, 2025 (the “2025 CEO Performance Award Grant Date”), the Board of Directors granted the 2025 CEO Performance Award to our CEO, consisting of approximately 423.7 million shares of performance-based restricted stock to our CEO, which was approved on November 6, 2025 by our shareholders (the “2025 CEO Performance Award Accounting Grant Date”). ... As of June 30, 2026, based on our current estimate of the achievement date, we had unrecognized stock-based compensation expense of $9.82 billion for the operational milestone that was considered probable of achievement over the term of the award, which we expect to be recognized over 9.2 years. As of June 30, 2026, we had unrecognized stock-based compensation expense of $105.82 billion to $120.37 billion for the operational milestones that were considered not probable of achievement. For the three and six months ended June 30, 2026, we recorded stock-based compensation expense of $267 million and $527 million, respectively, related to the 2025 CEO Performance Award.

The 2025 CEO Performance Award (423.7 million shares, granted September 2025, shareholder-approved November 2025) has 12 tranches tied to market-cap milestones ($2.0T to $8.5T) and operational milestones (20M vehicles delivered, 10M FSD subscriptions, 1M bots, 1M Robotaxis, Adjusted EBITDA targets up to $400B). As of June 30, 2026, only the 20M-vehicle milestone is considered probable; Tesla recorded $527M expense in H1 2026 and has $9.82B unrecognized expense over 9.2 years for that milestone. The remaining milestones carry $105.82B to $120.37B unrecognized expense but are not yet probable.

Added SpaceX equity investment high

Added in current filing · verify on EDGAR → · paraphrased

Upon receiving the applicable regulatory approvals, the Company invested $2.00 billion in SpaceX common stock (formerly a preferred share investment in xAI) representing an ownership interest of less than 1% in March 2026. We have determined that under the applicable accounting standards, we are presumed to have significant influence over SpaceX and as such, we account for this investment using the equity method of accounting. ... We are presumed to have significant influence over our equity method investment in SpaceX under ASC 323, Equity Method Investments and Joint Ventures, as our CEO also serves as the CEO of SpaceX but as we do not have control over the investee, we have elected the fair value option in accordance with ASC 825, Financial Instruments, to provide a more relevant measure of the investment's current economic value to financial statement users. The fair value is determined on a quarterly basis in accordance with ASC 820, Fair Value Measurement, based on market observable inputs. The equity investment is presented within Other non-current assets on our consolidated balance sheet. Realized and unrealized gains and losses are recorded to Other income, net in our consolidated statement of operations.

Tesla invested $2.00 billion in SpaceX common stock in March 2026 (less than 1% ownership). The investment is accounted for at fair value (elected under ASC 825) with quarterly mark-to-market gains/losses flowing through Other income, net. The cash flow statement shows a $2.002B purchase and a $1.005B unrealized gain in H1 2026, implying the investment appreciated to approximately $3.0 billion by June 30, 2026.

Added California deferred tax asset valuation allowance release high

Added in current filing · verify on EDGAR →

During the three months ended June 30, 2026, following the enactment of California Senate Bill 122 (SB 122) into law and based on the relevant weight of positive and negative evidence, including the consideration of our expected California tax liabilities, we concluded that it is more likely than not that our California deferred tax assets, other than research and development tax credits, are realizable. Accordingly, we released the valuation allowance related to these California deferred tax assets. The release of this valuation allowance and an immaterial accrual of pillar two tax resulted in a $274 million income tax benefit that was included in our provision for income taxes for the three and six months ended June 30, 2026.

Tesla released the valuation allowance on California deferred tax assets (excluding R&D credits) in Q2 2026 following enactment of California Senate Bill 122, recognizing a $274 million income tax benefit. This reduced the effective tax rate for Q2 2026 to 15% (vs. 23% in Q2 2025).

Added Tariff refund contingency medium

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In February 2026, the U.S. Supreme Court issued a ruling invalidating certain tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA). As a result of this ruling, we may be eligible for a refund of tariffs previously paid on imported goods. As the recoverability and timing of any future refund remains uncertain, we will not recognize any receivable nor corresponding offset to expense or asset until such amounts are realized or realizable. We continue to monitor these developments and their potential impact on our results of operations, including reduction of revenue for any future potential refunds to certain energy storage customers for which a contractual obligation exists.

A February 2026 U.S. Supreme Court ruling invalidated certain IEEPA tariffs, potentially entitling Tesla to refunds on previously paid tariffs. Tesla has not recognized any receivable because recoverability and timing are uncertain. The disclosure notes that any refund to energy storage customers (where contractual obligations exist) would reduce revenue.

Added Benavides v. Tesla product liability verdict and appeal medium

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On August 1, 2025, a jury in the U.S. District Court for the Southern District of Florida reached a verdict in a product liability trial relating to certain allegations regarding the use of our Autopilot technology in a 2019 accident that resulted in a fatality and injuries. The jury awarded $129 million in total compensatory damages, finding the driver 67% at fault and the Company 33% at fault. The jury also awarded $200 million in punitive damages. On September 15, 2025, the Company filed a post-trial motion for judgment as a matter of law or, in the alternative, a new trial on all issues or an amended judgment to lesser compensatory and punitive damages. On February 19, 2026, the Court denied the Company’s post-trial motions, and on July 2, 2026, the Company filed its opening brief with the U.S. Court of Appeals for the Eleventh Circuit. Although we believe that the facts and law do not justify the damages awarded, the Company has recorded an immaterial accrual.

A Florida jury awarded $129M compensatory damages (33% Tesla fault) and $200M punitive damages in an Autopilot product liability case involving a 2019 fatality. Tesla's post-trial motions were denied in February 2026; the company filed an appeal in July 2026 and has recorded an immaterial accrual.

Added New securities litigation (August 2025) medium

Added in current filing · verify on EDGAR →

On August 4, 2025, a proposed class action was filed in the U.S. District Court Western District of Texas against Tesla, Inc., Elon Musk, and certain current and former Company executives. The complaint alleges that the defendants violated federal securities laws through alleged material misrepresentations in public filings regarding the effectiveness of Autopilot, Full-Self Driving (Supervised), and Robotaxi. The complaint seeks monetary damages and other relief on behalf of persons who purchased Tesla stock between April 19, 2023, and June 22, 2025. The plaintiffs filed an amended complaint on February 17, 2026, and Tesla moved to dismiss the amended complaint on April 20, 2026. The plaintiffs filed a response to the motion to dismiss on June 22, 2026.

A new securities class action was filed in August 2025 alleging material misrepresentations about Autopilot, FSD, and Robotaxi effectiveness for the period April 2023 to June 2025.

Substantive Edit Automotive regulatory credits remaining performance obligations high

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As of June 30, 2025, total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an original expected length of more than one year was $3.47 billion. Of this amount, we expect to recognize $880 million in the next 12 months and the rest over the remaining performance obligation period. Recent governmental and regulatory actions have repealed and/or restricted certain regulatory credit programs tied to our products, contributing to the $1.11 billion decrease in our remaining performance obligations as of June 30, 2025 compared to March 31, 2025. Additionally, changes in regulations on automotive regulatory credits may significantly impact our remaining performance obligations and revenue to be recognized under these contracts.

Current filing · verify on EDGAR →

As of June 30, 2026, total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an original expected length of more than one year was $287 million. Of this amount, we expect to recognize $220 million in the next 12 months and the rest over the remaining performance obligation period. Changes in regulations on automotive regulatory credits may significantly impact our remaining performance obligations and revenue to be recognized under these contracts. Recent governmental and regulatory actions have restricted certain regulatory credit programs tied to our products.

Automotive regulatory credit remaining performance obligations (contracts >1 year) collapsed from $3.47 billion at June 30, 2025 to $287 million at June 30, 2026 — a 92% decline. The baseline disclosed a $1.11 billion sequential drop in Q2 2025 due to regulatory repeals/restrictions; the current filing shows the trend continued. This reflects ongoing regulatory headwinds to regulatory credit revenue.

Substantive Edit Energy generation and storage remaining performance obligations medium

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As of June 30, 2025, total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an original expected length of more than one year was $10.38 billion. Of this amount, we expect to recognize $5.47 billion in the next 12 months and the rest over the remaining performance obligation period.

Current filing · verify on EDGAR →

As of June 30, 2026, total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an original expected length of more than one year was $10.05 billion. Of this amount, we expect to recognize $4.56 billion in the next 12 months and the rest over the remaining performance obligation period.

Energy generation and storage remaining performance obligations (contracts >1 year) decreased from $10.38 billion at June 30, 2025 to $10.05 billion at June 30, 2026, with the next-12-month portion declining from $5.47 billion to $4.56 billion. This suggests slower near-term revenue conversion in the energy storage backlog.

Substantive Edit Resale value guarantee maximum exposure medium

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Our maximum exposure on the guarantees we provide if they are unable to sell the vehicle at or above the vehicle’s contractual residual value at the end of the lease term was $2.46 billion and $1.45 billion as of June 30, 2025 and December 31, 2024, respectively.

Current filing · verify on EDGAR →

Our maximum exposure on the guarantees we provide if they are unable to sell the vehicle at or above the vehicle’s contractual residual value at the end of the lease term was $4.07 billion and $3.45 billion as of June 30, 2026 and December 31, 2025, respectively.

Maximum exposure on resale value guarantees to commercial banking partners increased from $2.46 billion at June 30, 2025 to $4.07 billion at June 30, 2026 — a 65% year-over-year increase. This reflects growth in the leasing programs that carry residual-value guarantees, increasing Tesla's contingent liability if used-vehicle values fall below contractual residuals.

Substantive Edit Stock-based compensation expense high

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For the three and six months ended June 30, 2025, we recorded $54 million and $92 million, respectively, of stock-based compensation expense related to these grants, net of forfeitures. ... The following table summarizes our stock-based compensation expense by line item in the consolidated statements of operations (in millions): ... Total $ 635 $ 439 $ 1,208 $ 963

Current filing · verify on EDGAR →

For the three and six months ended June 30, 2026, we recorded $138 million and $274 million, respectively, of stock-based compensation expense related to these grants, net of forfeitures. ... The following table summarizes our stock-based compensation expense by line item in the consolidated statements of operations (in millions): ... Total $ 1,151 $ 635 $ 2,181 $ 1,208

Total stock-based compensation expense increased from $1.208 billion in H1 2025 to $2.181 billion in H1 2026 — an 81% increase. The 2025 CEO Performance Award contributed $527 million in H1 2026 (vs. zero in H1 2025), and other performance-based grants contributed $274 million (vs. $92 million in H1 2025). The increase reflects the new CEO award and expanded performance-based grants to other employees.

Substantive Edit Effective tax rate high

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Our effective tax rate was 23% and 25% for the three and six months ended June 30, 2025, respectively, compared to 21% and 23% for the three and six months ended June 30, 2024, respectively. The change in our effective tax rate was primarily due to the changes in the mix of our jurisdictional earnings.

Current filing · verify on EDGAR →

Our effective tax rate was 15% and 22% for the three and six months ended June 30, 2026, respectively, compared to 23% and 25% for the three and six months ended June 30, 2025, respectively. The decreases in our effective tax rates were primarily due to the release of the valuation allowance on our California deferred tax assets other than research and development tax credits and changes in the mix of our jurisdictional earnings, partially offset by the non-deductibility of stock-based compensation expense related to the 2025 CEO Performance Award.

The effective tax rate for Q2 2026 dropped to 15% (vs. 23% in Q2 2025) due to the $274 million California valuation allowance release. For H1 2026, the rate was 22% (vs. 25% in H1 2025). The benefit was partially offset by non-deductible stock-based compensation expense from the 2025 CEO Performance Award.

Removed Litigation Relating to 2018 CEO Performance Award appeal status high

Removed from previous filing · verify on EDGAR →

On June 4, 2018, a purported Tesla stockholder filed a putative class and derivative action in the Delaware Court of Chancery against Elon Musk and the members of Tesla’s board of directors as then constituted, alleging corporate waste, unjust enrichment and that such board members breached their fiduciary duties by approving the stock-based compensation plan awarded to Elon Musk in 2018 (the “2018 CEO Performance Award”). Trial was held November 14-18, 2022. On January 30, 2024, the Court issued an opinion finding that the 2018 CEO Performance Award should be rescinded. Plaintiff’s counsel filed a brief seeking a fee award of 29,402,900 Tesla shares, plus expenses of $1,120,115.50. Tesla opposed the fee request, and at Tesla’s 2024 Annual Meeting of Stockholders, 72% of the disinterested voting shares of Tesla, excluding shares owned by Mr. Musk and Kimbal Musk, voted to ratify the 2018 CEO Performance Award. Because Tesla’s disinterested stockholders voted to ratify the 2018 CEO Performance Award, Mr. Musk and the other director defendants, joined by Tesla, filed a brief seeking to revise the Court’s January 30, 2024 opinion. On December 2, 2024, the Court issued an opinion denying the motion to revise the Court’s January 30, 2024 opinion and awarded Plaintiff’s counsel fees in the amount of $345 million. A final judgment was entered by the Court, and the director defendants and Tesla appealed the decisions to the Delaware Supreme Court. Tesla and the Director Defendants filed their response briefs on March 11, 2025. Plaintiffs filed their opening brief on April 25, 2025, and reply briefs were filed on May 16, 2025. Therefore, the appeal has been fully briefed, but an oral argument date has not yet been set. If the appeal to the Delaware Supreme Court were unsuccessful, it could result in a material adverse impact on our business and reported earnings due to the uncertainty and potentially significant costs associated with replacing or revising Mr. Musk’s compensation package, the types of which were described in our 2024 proxy statement.

The 2018 CEO Performance Award litigation is absent from the current filing because the Delaware Supreme Court reversed the rescission order in early 2026 (as disclosed in Note 9). The baseline described the pending appeal; the current filing reflects the appeal's resolution and the award's reinstatement.

Removed Certain Derivative Lawsuits in Delaware — case dismissal medium

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Before converting from a Delaware to Texas corporation on June 13, 2024, three separate derivative actions brought by purported Tesla stockholders were filed in the Delaware Court of Chancery on May 24, June 10 and June 13, 2024, purportedly on behalf of Tesla, against current and former directors regarding topics involving Elon Musk and others, X Corp. (formerly Twitter) and x.AI. These suits assert various claims, including breach of fiduciary duty and breach of contract, and seek unspecified damages and other relief. On August 6, 2024, the plaintiffs in these three actions moved to consolidate the matters into a single case. The Court consolidated two of the three cases. Tesla and the directors filed motions to dismiss on April 4, 2025. On June 10, 2025, the plaintiffs in the consolidated cases filed an opposition, and on that same date, the plaintiff in the case that was not consolidated filed an amended complaint.

The current filing updates the Delaware derivative lawsuits: the Court granted Tesla's motions to dismiss on April 13, 2026, and plaintiffs appealed in May 2026.

Removed Recent accounting pronouncements — OBBBA tax law changes medium

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On July 4, 2025, the U.S. H.R.1, an act to provide for reconciliation pursuant to title II of H. Con. Res. 14. (“the OBBBA”) was enacted. The OBBBA introduces multiple tax law and other legislative changes, including modifications to income tax provisions such as domestic research and development expenses, capital expenditures, and U.S. taxation of international earnings; the repeal or acceleration of the sunset of certain tax credits under the 2022 Inflation Reduction Act and elimination of certain penalties for violations of certain regulatory credit programs. We are currently evaluating the impact of these provisions on our consolidated financial statements, including loss of certain regulatory credit sales tied to our products and changes to the costs of our products.

The OBBBA tax law changes (enacted July 4, 2025, including repeal/sunset of IRA tax credits and elimination of certain regulatory credit penalties) are absent from the current filing's recent accounting pronouncements section. The baseline disclosed Tesla was evaluating the impact; the current filing omits this, suggesting the evaluation is complete and the impacts are reflected in the current period results (e.g., the regulatory credit remaining performance obligation collapse).

Show 13 minor / wording changes
Added New consumer class action (June 2026) low

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On June 4, 2026, a proposed class action was filed in the U.S. District Court for the Northern District of California against Tesla, Inc. and related entities. The complaint alleges that Tesla made certain statements regarding the capabilities of its driver assistance technology systems. The complaint seeks damages and other relief on behalf of certain consumers who purchased or leased a Tesla vehicle.

A new consumer class action was filed in June 2026 in the Northern District of California alleging misrepresentations about driver assistance technology capabilities. The case is in early stages.

Removed Litigation Relating to Potential Going Private Transaction — dismissal low

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Between October 17, 2018 and March 8, 2021, seven derivative lawsuits were filed in the Delaware Court of Chancery, purportedly on behalf of Tesla, against Mr. Musk and the members of Tesla’s board of directors, as constituted at relevant times, in relation to statements made and actions connected to a potential going private transaction, with certain of the lawsuits challenging additional Twitter posts by Mr. Musk, among other things. Several of those actions were consolidated, and all have been stayed. In addition to these cases, two derivative lawsuits were filed on October 25, 2018 and February 11, 2019 in the U.S. District Court for the District of Delaware, purportedly on behalf of Tesla, against Mr. Musk and the members of the Tesla board of directors as then constituted. Those cases were also consolidated, and on April 25, 2025, were dismissed with prejudice through a stipulation and order.

The current filing omits the going-private litigation section entirely. The baseline disclosed that the Delaware federal cases were dismissed with prejudice in April 2025; the Delaware Chancery cases remain stayed. The omission reflects that the federal dismissal is final and the stayed Chancery cases have no active developments.

Removed Litigation Relating to Potential Going Private Transaction — stayed cases low

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On October 21, 2022, a lawsuit was filed in the Delaware Court of Chancery by a purported shareholder of Tesla alleging, among other things, that board members breached their fiduciary duties in connection with their oversight of the Company’s 2018 settlement with the SEC, as amended. Among other things, the plaintiff seeks reforms to the Company’s corporate governance and internal procedures, unspecified damages, and attorneys’ fees. The lawsuit has been stayed.

The October 2022 Delaware Chancery lawsuit alleging breach of fiduciary duty in connection with the 2018 SEC settlement is absent from the current filing. The baseline disclosed it as stayed; the current filing omits it, suggesting no material developments.

Removed Class action dismissal (Northern District of California) low

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On October 5, 2022, a proposed class action complaint was filed in the U.S. District Court for the Eastern District of New York asserting similar state and federal law claims against the same defendants. On September 30, 2023, the Court dismissed this action with leave to amend the complaint. On November 20, 2023, the plaintiff moved to amend the complaint, which Tesla opposed. On August 8, 2024, the Court denied the plaintiff’s motion for leave to file an amended complaint and entered judgment for Tesla. On September 5, 2024, the plaintiff filed a notice of appeal to United States Court of Appeals for the Second Circuit, and oral argument occurred on March 20, 2025. On April 25, 2025, the Second Circuit affirmed the lower court’s order and dismissed the case.

The Eastern District of New York class action (filed October 2022, alleging driver assistance technology misrepresentations) was affirmed dismissed by the Second Circuit in April 2025. The current filing omits this case because the dismissal is final.

Removed Class action dismissal (San Diego County) low

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On October 2, 2023, a similar proposed class action was filed in San Diego County Superior Court in California. Tesla subsequently removed the San Diego County case to federal court and on January 8, 2024, the federal court granted Tesla’s motion to transfer the case to the U.S. District Court for the Northern District of California. Tesla moved to compel arbitration, which the plaintiff did not oppose, and on June 27, 2024, the Court stayed the case pending arbitration.

The current filing omits this case, suggesting it remains stayed with no material developments.

Removed Securities class action dismissal (Northern District of California) low

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On February 27, 2023, a proposed class action was filed in the U.S. District Court for the Northern District of California against Tesla, Inc., Elon Musk and certain current and former Company executives. The complaint alleges that the defendants made material misrepresentations and omissions about the Company’s Autopilot and FSD Capability technologies and seeks money damages and other relief on behalf of persons who purchased Tesla stock between February 19, 2019, and February 17, 2023. An amended complaint was filed on September 5, 2023, naming only Tesla, Inc. and Elon Musk as defendants. On November 6, 2023, Tesla moved to dismiss the amended complaint. On September 30, 2024, the Court granted Tesla’s motion to dismiss without prejudice. On November 26, 2024, the court issued a final judgment in Tesla’s favor, and on December 23, 2024, the plaintiffs filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit. The appeal has been fully briefed, and the parties are awaiting a date for oral argument.

The February 2023 securities class action (alleging Autopilot/FSD misrepresentations for the period February 2019 to February 2023) was dismissed in September 2024 and is on appeal to the Ninth Circuit. The current filing omits this case, likely because it is superseded by the newer August 2025 securities class action covering a later period (April 2023 to June 2025).

Removed Antitrust class action dismissal (Northern District of California) low

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On March 14, 2023, a proposed class action was filed against Tesla, Inc. in the U.S. District Court for the Northern District of California. Several similar complaints were also filed in the same court and these cases have now all been consolidated. These complaints allege that Tesla violates federal antitrust and warranty laws through its repair, service, and maintenance practices and seeks, among other relief, damages for persons who paid Tesla for repairs services or Tesla compatible replacement parts from March 2019 to March 2023. On July 17, 2023, these plaintiffs filed a consolidated amended complaint. On September 27, 2023, the court granted Tesla’s motion to compel arbitration as to three of the plaintiffs, and on November 17, 2023, the court granted Tesla’s motion to dismiss without prejudice. The plaintiffs filed a Consolidated Second Amended Complaint on December 12, 2023, which Tesla moved to dismiss. Plaintiffs also appealed the court’s arbitration order, which was denied. On June 17, 2024, the Court granted in part and denied in part Tesla’s motion to dismiss the Consolidated Second Amended Complaint. On February 18, 2025, the plaintiffs filed a Third Consolidated Amended Class Action Complaint that removed the claims for monetary damages. On June 9, 2025, pursuant to the parties’ stipulated motion, the court dismissed the case with prejudice.

The March 2023 antitrust class action (alleging anticompetitive repair/service practices) was dismissed with prejudice in June 2025 pursuant to a stipulated motion. The current filing omits this case because the dismissal is final.

Removed Data incident class action low

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We are also subject to various other legal proceedings, risks and claims that arise from the normal course of business activities. For example, during the second quarter of 2023, a foreign news outlet reported that it obtained certain misappropriated data including, purportedly non-public Tesla business and personal information. Tesla made notifications to potentially affected individuals (current and former employees) and regulatory authorities and worked with certain law enforcement and other authorities. On August 5, 2023, a putative class action was filed in the United States District Court for the Northern District of California, purportedly on behalf of all U.S. individuals impacted by the data incident, followed by several additional lawsuits, that each assert claims under various state laws and seeks monetary damages and other relief. If an unfavorable ruling or development were to occur in these or other possible legal proceedings, risks and claims, there exists the possibility of a material adverse impact on our business, results of operations, prospects, cash flows, financial position or brand.

The data incident class actions (filed August 2023 following a Q2 2023 data breach) are absent from the current filing. The baseline disclosed them as pending; the current filing omits them, suggesting they were dismissed, settled, or remain immaterial with no developments.

Removed Recent accounting pronouncements — ASU 2023-09 low

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In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective for annual periods beginning after December 15, 2024, and will likely result in the required additional disclosures being included in our consolidated financial statements on either a prospective or retrospective basis, once adopted.

ASU 2023-09 (income tax disclosure improvements, effective for annual periods beginning after December 15, 2024) is absent from the current filing's recent accounting pronouncements section.

Removed Recent accounting pronouncements — ASU 2023-08 adoption low

Removed from previous filing · view on EDGAR →

ASU 2023-08 In Decembe

ASU 2023-08 (crypto asset accounting) is absent from the current filing's recent accounting pronouncements section. The baseline disclosed it as recently adopted; the current filing omits it because it is no longer a recent pronouncement (adopted in 2024).

Added Recent accounting pronouncements — ASU 2025-06 low

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In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The ASU simplifies the capitalization guidance by removing all references to prescriptive and sequential software development stages (referred to as “project stages”) throughout ASC 350-40. The ASU is effective for annual periods beginning after December 15, 2027, and interim periods within those fiscal years. Adoption of this ASU can be applied prospectively for reporting periods after its effective date; or following a modified transition approach that is based on the status of the respective projects and whether software costs were capitalized before the date of adoption; or retrospectively to any or all prior periods presented in the consolidated financial statements. Early adoption is permitted. We are currently evaluating the provisions of this ASU and do not expect this ASU to have a material impact on our consolidated financial statements.

ASU 2025-06 (internal-use software capitalization simplification, effective for annual periods beginning after December 15, 2027) is a new pronouncement disclosed in the current filing. Tesla does not expect a material impact.

Added Recent accounting pronouncements — ASU 2025-XX (December 2025) low

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In December 2025, the FASB issued ASU No. 202

The current filing references a December 2025 ASU (number truncated in the excerpt) but the text is cut off. This is a new pronouncement not present in the baseline.

Substantive Edit Balance sheet reclassification — solar energy systems to energy generation and storage systems low

Previous filing · view on EDGAR →

Solar energy systems, net 4,788 4,924

Current filing · verify on EDGAR →

Energy generation and storage systems, net 4,510 4,604

The balance sheet line item "Solar energy systems, net" (baseline) was renamed to "Energy generation and storage systems, net" (current). The current filing also removed separate line items for "Intangible assets, net" and "Goodwill" from the balance sheet, consolidating them into "Other non-current assets." These are presentational reclassifications.

Risk Factors

~65 words (-91% vs prior)

Q2 2026 removes detailed risk factor on government incentives for EVs and energy products; now references only 2025 10-K.

1 Removed
Show 1 minor / wording change
Removed government incentives for EVs and energy products low

Removed from previous filing · verify on EDGAR →

Demand for our products and services and our financial results may be impacted by the status of government and economic incentives supporting the development and adoption of such products. Government and economic incentives that support the development and adoption of electric vehicles in the U.S. and abroad, including certain tax exemptions, tax credits and rebates, may be reduced, eliminated, amended or exhausted from time to time. For example, previously available incentives favoring electric vehicles in certain areas have expired or were cancelled or temporarily unavailable, and in some cases were not eventually replaced or reinstituted, which may have negatively impacted sales. Specifically, recent governmental and regulatory actions have repealed and/or restricted consumer, manufacturing and charging infrastructure tax credits, and certain regulatory credit programs tied to our products. These, and any similar actions in the future, may affect demand for our vehicles, and harm our growth, prospects and operating results, and the loss of previously available tax credits and carbon offset mechanisms may further negatively impact our financial results. In addition, certain government and economic incentives may also be implemented or amended to provide benefits to manufacturers who assemble domestically, have local suppliers or have other characteristics that may not apply to Tesla. Such developments could negatively impact demand for our vehicles, and we and our customers may have to adjust to them, including through pricing modifications. In addition, certain governmental rebates, tax credits and other financial incentives that are currently available with respect to our solar and energy storage product businesses allow us to lower our costs and encourage customers to buy our products and investors to invest in our solar financing funds. However, these incentives may expire when the allocated funding is exhausted, reduced or terminated as renewable energy adoption rates increase, sometimes without warning. For example, provisions of the OBBBA could affect battery cell expenses and impact costs for our consumers, negatively impacting demand. Likewise, in jurisdictions where net metering is currently available, our customers receive bill credits from utilities for energy that their solar energy systems generate and export to the grid in excess of the electric load they use. The benefit available under net metering has been or has been proposed to be reduced, altered or eliminated in several jurisdictions, and has also been contested and may continue to be contested before the Federal Energy Regulatory Commission. Any reductions or terminations of such incentives may harm our business, prospects, financial condition and operating results by making our products less competitive for customers, increasing our cost of capital and adversely impacting our ability to attract investment partners and to form new financing funds for our solar and energy storage assets.

Q2 2025 10-Q disclosed a detailed risk factor covering government incentive changes affecting EV tax credits, charging infrastructure credits, regulatory credit programs, solar rebates, and net metering. Q2 2026 10-Q does not repeat this disclosure. Per 10-Q Item 1A framing, non-repetition is presentational — the 2025 10-K version still stands — not a rescission or signal that the risk has diminished.

Financial Statements

Primary statements as printed on the EDGAR filing (iXBRL face). Companyfacts is used only when a statement is not on the HTML face. Not generated by the model.

As filed

Consolidated Statements of Operations (Unaudited)

(in millions, except per share data)

Description Three months ended June 30, 2026 Three months ended June 30, 2025 Six months ended June 30, 2026 Six months ended June 30, 2025
Revenues
Automotive sales 20,006 15,787 35,479 28,712
Automotive regulatory credits 146 439 526 1,034
Automotive leasing 364 435 745 882
Total automotive revenues 20,516 16,661 36,750 30,628
Energy generation and storage 3,139 2,789 5,547 5,519
Services and other 4,581 3,046 8,326 5,684
Total revenues 28,236 22,496 50,623 41,831
Cost of revenues
Automotive sales 16,866 13,567 29,482 25,028
Automotive leasing 187 228 383 467
Total automotive cost of revenues 17,053 13,795 29,865 25,495
Energy generation and storage 2,499 1,943 3,955 3,888
Services and other 3,933 2,880 7,332 5,417
Total cost of revenues 23,485 18,618 41,152 34,800
Gross profit 4,751 3,878 9,471 7,031
Operating expenses
Research and development 2,371 1,589 4,317 2,998
Selling, general and administrative 1,982 1,366 3,815 2,617
Restructuring and other — — — 94
Total operating expenses 4,353 2,955 8,132 5,709
Income from operations 398 923 1,339 1,322
Interest income 422 392 856 792
Interest expense (81) (86) (173) (177)
Other income, net 590 320 55 201
Income before income taxes 1,329 1,549 2,077 2,138
Provision for income taxes 201 359 458 528
Net income 1,128 1,190 1,619 1,610
Net income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries 14 18 28 29
Net income attributable to common stockholders 1,114 1,172 1,591 1,581
Net income per share of common stock attributable to common stockholders
Basic 0.34 0.36 0.49 0.49
Diluted 0.32 0.33 0.45 0.45
Weighted average shares used in computing net income per share of common stock
Basic 3,237 3,223 3,235 3,220
Diluted 3,540 3,519 3,538 3,520

Consolidated Balance Sheets (Unaudited)

(in millions, except per share data)

Description June 30, 2026 December 31, 2025
Assets
Current assets
Cash and cash equivalents 15,219 16,513
Short-term investments 28,305 27,546
Accounts receivable, net 4,087 4,576
Inventory 13,752 12,392
Prepaid expenses and other current assets 7,395 7,615
Total current assets 68,758 68,642
Operating lease vehicles, net 4,253 4,912
Energy generation and storage systems, net 4,510 4,604
Property, plant and equipment, net 47,255 40,643
Operating lease right-of-use assets 6,386 6,027
Digital assets 674 1,008
Deferred tax assets 7,235 6,925
Other non-current assets 9,453 5,045
Total assets 148,524 137,806
Liabilities
Current liabilities
Accounts payable 15,324 13,371
Accrued liabilities and other 15,256 13,279
Deferred revenue 3,427 3,424
Current portion of debt and finance leases 1,418 1,640
Total current liabilities 35,425 31,714
Debt and finance leases, net of current portion 7,924 6,736
Deferred revenue, net of current portion 4,073 3,631
Other long-term liabilities 13,583 12,860
Total liabilities 61,005 54,941
Commitments and contingencies (Note 11)
Redeemable noncontrolling interests in subsidiaries 54 58
Equity
Stockholders’ equity
Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding — —
Common stock; $0.001 par value; 6,000 shares authorized; 3,949 and 3,751 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 4 3
Additional paid-in capital 45,859 42,770
Accumulated other comprehensive income 401 361
Retained earnings 40,594 39,003
Total stockholders’ equity 86,858 82,137
Noncontrolling interests in subsidiaries 607 670
Total liabilities and equity 148,524 137,806

Consolidated Statements of Cash Flows (Unaudited)

(in millions)

Description Six months ended June 30, 2026 Six months ended June 30, 2025
Cash Flows from Operating Activities
Net income 1,619 1,610
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and impairment 3,209 2,880
Stock-based compensation 2,181 1,208
Inventory write-downs 187 248
Foreign currency transaction net unrealized loss 599 54
Deferred income taxes (301) 9
SpaceX equity investment unrealized gain (1,005) —
Digital assets unrealized loss (gain) 334 (159)
Non-cash interest and other operating activities 33 73
Changes in operating assets and liabilities:
Accounts receivable 377 601
Inventory (1,663) (2,407)
Operating lease vehicles 260 65
Prepaid expenses and other assets (1,028) (1,137)
Accounts payable, accrued and other liabilities 3,341 1,333
Deferred revenue 491 318
Net cash provided by operating activities 8,634 4,696
Cash Flows from Investing Activities
Purchases of property and equipment excluding finance leases, net of sales (8,282) (3,886)
Purchase of SpaceX equity investment (2,002) —
Purchases of short-term investments (16,281) (13,500)
Proceeds from maturities of short-term investments 15,621 12,791
Purchase of intangible assets (7) —
Net cash used in investing activities (10,951) (4,595)
Cash Flows from Financing Activities
Proceeds from issuances of debt 4,679 3,050
Repayments of debt (3,922) (4,129)
Debt issuance costs (4) (1)
Proceeds from exercises of stock options and other stock issuances, net of issuance costs 468 528
Principal payments on finance leases (37) (67)
Proceeds received from directors in shareholder settlement — 277
Recovery (payment) of legal fees associated with shareholder settlement 116 (176)
Distributions paid to noncontrolling interests in subsidiaries (91) (36)
Net cash provided by (used in) financing activities 1,209 (554)
Effect of exchange rate changes on cash and cash equivalents and restricted cash (83) 151
Net decrease in cash and cash equivalents and restricted cash (1,191) (302)
Cash and cash equivalents and restricted cash, beginning of period 17,616 17,037
Cash and cash equivalents and restricted cash, end of period 16,425 16,735
Supplemental Non-Cash Investing and Financing Activities
Acquisitions of property and equipment included in liabilities 2,633 1,639
Leased assets obtained in exchange for operating lease liabilities 886 784
Leased assets obtained in exchange for finance lease liabilities 97 —

Amounts as printed on the EDGAR/iXBRL face — (in millions, except per share data); (in millions). Labels, columns, and figures are the filing face, not a GAAP stencil. Interactive statements & notes on EDGAR ↗

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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 14, 2026 · How we verify