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- Benavides V. Tesla Jury Verdict (new) — Florida jury awarded $329M total damages ($129M compensatory, $200M punitive) in Autopilot product-liability case; Tesla appealed to Eleventh Circuit July 2026, recorded immaterial accrual.
- New Securities Class Action (Texas, Aug 2025) (unchanged) — Federal securities suit alleges material misrepresentations about Autopilot/FSD/Robotaxi effectiveness (class period April 2023–June 2025); Tesla moved to dismiss April 2026, plaintiffs responded June 2026.
- N.D. Cal. Fsd Consumer Class Certified (worsened) — Court certified limited California consumer class (Aug 2025); Tesla appealed certification to Ninth Circuit (granted Dec 2025), district court stayed case Jan 2026, oral argument set Aug 31, 2026.
Tesla revenue +26% on vehicle/storage growth; operating income -57% as capex triples to >$25B for AI
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
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.
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.
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. 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, 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. 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.
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. 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 →
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. 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.
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.
Prior filing · verify on EDGAR →
Owing and subject to the foregoing as well as the pipeline of announced projects under development, all other continuing infrastructure growth and varying levels of inflation, 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.
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.
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.
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. ... 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.
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.
Key Changes
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high
Operating income fell 57% YoY ($923M → $398M) despite 26% revenue growth, as R&D (+44%) and SG&A (+45%) surged with AI programs and $527M in CEO equity-award expense. Net income flat YoY.
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high
Capex guidance raised from >$9B (2025) to >$25B (2026) — nearly 3× — driven by AI compute infrastructure (Cortex clusters), Robotaxi fleet expansion, and new semiconductor/solar fabrication.
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high
Regulatory credits revenue fell 67% Q2 ($440M → $147M) as "recent governmental actions have restricted certain programs tied to our products"; remaining obligations dropped $3.2B YoY to $287M.
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high
Energy storage gross margin compressed to 20.4% (from 30.3% prior year) on deployment mix, higher cost per MWh, and unfavorable warranty adjustments, despite 12% volume growth (22.3 GWh).
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high
New CEO equity award (423.7M shares, Sept 2025) carries $9.8B unrecognized expense for one probable milestone (9.2-year vest) and $106B–$120B for milestones not yet probable; $527M expensed H1 2026.
Summary
Tesla's Q2 2026 results show a sharp strategic pivot toward AI infrastructure at the expense of near-term profitability. Revenue grew 26% YoY to $28.2B on stronger vehicle deliveries (+18% cash units) and energy storage deployments (+12% to 22.3 GWh), but operating income fell 57% ($923M → $398M) as R&D and SG&A surged 44–45% to fund AI programs, Robotaxi scaling, and a new $527M CEO equity award. Net income remained essentially flat YoY despite the revenue growth, signaling margin compression. The company reframed its mission from sustainable energy to "bringing artificial intelligence into the real world," positioning EVs and storage as supporting operations rather than the core focus. Capex guidance tripled to >$25B (from >$9B in 2025) for AI compute clusters (Cortex expansion at Gigafactory Texas), Robotaxi fleet infrastructure, and new semiconductor/solar fabrication — a capital-intensive bet on autonomy and humanoid robots (Optimus). Cybercab production began in H1 2026, and the Robotaxi service is scaling post-June 2025 launch. Two headwinds cloud the growth story. Regulatory credits revenue collapsed 67% Q2 as "recent governmental actions have restricted certain programs tied to our products," with remaining obligations plunging $3.2B YoY to just $287M — a structural revenue loss. Energy storage gross margin compressed 990 basis points to 20.4% on deployment mix, higher costs, and unfavorable warranty adjustments, erasing the prior year's profitability gains. A Florida jury awarded $329M in Autopilot product-liability damages (33% Tesla fault); Tesla appealed but recorded an accrual. Two new class actions (Texas securities suit, N.D. Cal. consumer suit) allege FSD/Robotaxi misrepresentations, and a prior N.D. Cal. consumer case saw class certification (now on interlocutory appeal to the Ninth Circuit, oral argument Aug 31, 2026). The company invested $2.0B in SpaceX equity (March 2026) and released a $274M California deferred tax valuation allowance (Q2 2026), providing one-time tax relief. Watch next quarter whether operating leverage returns as AI capex scales, or whether the elevated cost structure persists. The regulatory-credits cliff and energy-margin compression are concrete drags; the AI/Robotaxi upside is multi-year and execution-dependent. The new CEO equity award ($9.8B unrecognized for one probable milestone, $106B–$120B for milestones not yet probable) will weigh on reported earnings for years if additional milestones become probable.Section-by-Section Diff
Legal Proceedings
Benavides jury verdict ($329M total damages, 33% fault) recorded; tariff-refund disclosure added; two new securities/consumer class actions filed.
Added in current filing · verify on EDGAR →
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 $329 million total damages ($129M compensatory, $200M punitive) in an Autopilot product-liability case involving a 2019 fatal accident, finding Tesla 33% at fault. The trial court denied post-trial motions in February 2026, and Tesla appealed to the Eleventh Circuit in July 2026. Tesla recorded an immaterial accrual, indicating the company believes the damages will be reduced or overturned on appeal.
Added in current filing · verify on EDGAR →
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 Supreme Court ruling invalidated certain IEEPA tariffs, potentially entitling Tesla to refunds on previously paid import duties. Tesla will not recognize any receivable until amounts are realized, and notes that contractual obligations may require passing through refunds to certain energy-storage customers (reducing revenue). The disclosure does not quantify the potential refund amount.
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 federal securities class action filed in Texas in August 2025 alleges material misrepresentations about Autopilot, FSD (Supervised), and Robotaxi effectiveness in public filings. The class period runs April 2023 through June 2025. Tesla moved to dismiss in April 2026; plaintiffs responded in June 2026. The case is in the motion-to-dismiss phase.
Added in current filing · verify on EDGAR →
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 filed in June 2026 in Northern California alleges misrepresentations about driver-assistance technology capabilities. The complaint seeks damages on behalf of consumers who purchased or leased Tesla vehicles. The case is in its initial pleading stage with no procedural updates disclosed.
Previous filing · verify on EDGAR →
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.
Current filing · verify on EDGAR →
On April 2, 2026, these cases were reassigned to a different judge. On April 13, 2026, the Court granted Tesla’s motions to dismiss and dismissed the cases. In May 2026, plaintiffs in the consolidated and coordinated cases appealed to the Delaware Supreme Court the decision granting Tesla’s motion to dismiss.
The Delaware derivative cases (involving Musk, X Corp., and xAI) were dismissed by the trial court in April 2026 after reassignment to a new judge. Plaintiffs appealed to the Delaware Supreme Court in May 2026. The baseline showed the cases in the briefing stage on motions to dismiss; the current filing reflects a favorable trial-court outcome now under appellate review.
Previous filing · verify on EDGAR →
On May 6, 2025, the plaintiff filed a motion for class certification, which has been fully briefed, and a hearing is scheduled for August 12, 2025.
Current filing · verify on EDGAR →
On May 6, 2025, the plaintiff filed a motion for class certification, which Tesla opposed, and on August 18, 2025, the Court certified a limited class comprised of California consumers who are not subject to an arbitration agreement. On September 1, 2025, Tesla filed a petition in the United States Court of Appeals for the Ninth Circuit for permission to appeal the class certification order, and on December 18, 2025, the Ninth Circuit granted Tesla’s petition. On January 5, 2026, the district court stayed the case pending resolution of the proceedings before the Ninth Circuit. The appeal has been fully briefed by the parties, and oral argument is set for August 31, 2026.
The Northern District of California FSD consumer class action advanced from a pending class-certification hearing (baseline) to a certified limited class (California consumers not subject to arbitration) in August 2025. Tesla obtained Ninth Circuit permission to appeal the certification order; the district court stayed the case in January 2026. Oral argument on the interlocutory appeal is scheduled for August 31, 2026.
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, which resulted in a trial-court rescission order and $345 million plaintiff-counsel fee award, is no longer disclosed in the current filing. The baseline showed the case fully briefed on appeal to the Delaware Supreme Court with no oral-argument date set. The current filing does not provide a status update, resolution, or explanation for the removal.
Removed from previous filing · view on EDGAR →
On June 17, 2020, a purported Tesla stockholder filed a derivative action in the Delaware Court of Chancery, purportedly on behalf of Tesla, against certain of Tesla’s current and former directors regarding compensation awards granted to Tesla’s directors, other than Elon Musk, between 2017 and 2020. The suit asserts claims for breach of fiduciary duty and unjust enrichment and seeks declaratory and injunctive relief, unspecified damages and other relief. Defendants filed their answer on September 17, 2020. On July 14, 2023, the parties filed a Stipulation and Agreement of Compromise and Settlement, which does not involve an admission of any wrongdoing by any party. Pursuant to the terms of the agreement, Tesla provided notice of the proposed settlement to stockholders of record as of July 14, 2023. The Court held a hearing regarding the settlement on October 13, 2023, after which it took the settlement and Plaintiff’s counsel fees request under advisement. On January 8, 2025, the Court approved the settlement and awarded Plaintiff’s counsel fees in the amount of approximately $176 million. A final judgment was entered by the Court on January 13, 2025. The Company disagrees with the amount of attorneys’ fees awarded by the court. On February 10, 2025, Tesla appealed the attorneys’ fee award amount to the Delaware Supreme Court. Tesla did not appeal the Delaware Court of Chancery’s approval of the underlying settlement. Also on February 10, 2025, a single shareholder appealed the approval of the settlement. This shareholder’s appeal does not seek to alter any material terms (e.g., financial contributions or the defendants’ obligations under the Settlement Agreement). The Delaware Court of Chancery had previously rejected this shareholder’s objections when approving the Settlement Agreement. Tesla’s appeal of the attorneys’ fee award and the single shareholder’s appeal have been fully briefed. An oral argument date has not yet been set. Because neither Tesla’s appeal nor the shareholder’s appeal seeks to vacate the Settlement Agreement or materially modify its terms, the Company implemented the provisions of the Settlement Agreement in May 2025 by cancelling the options requiring cancellation under its terms. In connection with the settlement, Tesla received $277 million from certain directors and paid Plaintiff’s counsel fees of $176 million (which, as noted above, the Company is appealing) in the three months ended March 31, 2025. We have recorded a $31 million reversal of previously recognized stock-based compensation expense in association with the returned awards and increased our provision for income taxes in relation to the return of directors’ compensation. As the settlement was an equity transaction, the net impact to additional paid-in-capital was $110 million in the three months ended March 31, 2025.
The directors' compensation derivative litigation, which settled in January 2025 with Tesla receiving $277 million from directors and paying $176 million in plaintiff-counsel fees, is no longer disclosed. The baseline showed Tesla appealing the fee award (not the settlement itself) to the Delaware Supreme Court, with briefs filed and no oral-argument date set. The settlement was implemented in May 2025. The current filing does not provide a resolution or explain the removal.
Removed from previous filing · verify on EDGAR →
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 FSD securities class action (N.D. Cal.) is no longer disclosed. The baseline showed the case dismissed in Tesla's favor in November 2024, with plaintiffs appealing to the Ninth Circuit in December 2024. The appeal was fully briefed and awaiting oral argument. The current filing does not provide a resolution or explain the removal.
Show 6 minor / wording changes
Removed from previous filing · verify on EDGAR →
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. 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 going-private derivative lawsuits (filed 2018-2021 in Delaware Chancery and D.Del.) are no longer disclosed. The baseline showed the D.Del. cases dismissed with prejudice in April 2025 via stipulation, and the Chancery cases stayed. The October 2022 Chancery case regarding SEC-settlement oversight, also stayed, is likewise absent. The current filing does not provide a resolution or explain the removal.
Removed from previous filing · verify on EDGAR →
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 antitrust/repair-services class action (N.D. Cal.) was dismissed with prejudice in June 2025 via stipulated motion after plaintiffs removed monetary-damages claims. The baseline disclosed the dismissal; the current filing does not mention the case. This is a lifecycle removal — the case concluded favorably and is no longer current news.
The data-breach putative class actions (N.D. Cal., filed Aug 2023 following a Q2 2023 data incident) are no longer disclosed. The baseline described the incident and lawsuits in the "various other legal proceedings" paragraph. The current filing does not provide a resolution or explain the removal.
Removed from previous filing · verify on EDGAR →
For a description of our operating lease arrangements in Buffalo, New York, and Shanghai, China, refer to Note 14, Commitments and Contingencies, in our Annual Report on Form 10-K for the year ended December 31, 2024. As of June 30, 2025, we have met and expect to meet the requirements under these arrangements, as may be modified and discussed from time to time, based on our current and anticipated level of operations.
The operating-lease commitments disclosure (Buffalo, Shanghai) is no longer included in the Commitments and Contingencies note. The baseline stated Tesla had met and expected to meet the requirements as of June 30, 2025. The current filing does not provide an update or explain the removal.
Removed from previous filing · verify on EDGAR →
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 FSD consumer class action is no longer disclosed. The baseline showed the case dismissed in Tesla's favor in August 2024, with the Second Circuit affirming the dismissal in April 2025. This is a lifecycle removal — the case concluded favorably and is no longer current news.
Removed from previous filing · verify on EDGAR →
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 San Diego County FSD consumer class action (transferred to N.D. Cal. and stayed pending arbitration in June 2024) is no longer disclosed. The baseline showed the case stayed with no trial date. The current filing does not provide a resolution or explain the removal.
MD&A
Revenue +26% YoY; operating income -57%; capex guidance raised to >$25B (from >$9B) for AI/compute infrastructure; Robotaxi scaled post-June 2025 launch.
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.
Tesla reframed its mission from "accelerate the world's transition to sustainable energy" to "bringing artificial intelligence into the real world." The new language positions AI, FSD, Robotaxi, and Optimus as the primary strategic focus, with EVs and energy storage described as supporting operations rather than the core mission. This reflects a shift in how the company presents its strategic priorities to investors.
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.
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In 2026, we produced approximately 860 thousand consumer vehicles and delivered approximately 838 thousand consumer vehicles through the second quarter.
Production increased 11% YoY (860k vs 773k) and deliveries increased 16% YoY (838k vs 721k) through Q2. The delivery growth outpaced production growth, suggesting improved inventory management or stronger demand conversion.
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In 2025, we deployed 20.0 GWh of energy storage products through the second quarter.
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In 2026, we deployed 22.3 GWh of energy storage products through the second quarter.
Energy storage deployments increased 12% YoY (22.3 GWh vs 20.0 GWh) through Q2 2026, reflecting continued ramp of Megafactory capacity in Shanghai, Lathrop, and the new Houston facility under construction.
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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. 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.
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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. 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.
Revenue growth reversed from YoY declines in 2025 to strong YoY increases in 2026 (+26% Q2, +21% H1). However, net income was essentially flat YoY despite the revenue growth, indicating margin pressure or increased operating expenses. The prior year's revenue declines have been replaced by growth, but profitability has not scaled proportionally.
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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. 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.
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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. 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.
Cash and investments increased 18% YoY ($43.52B vs $36.78B) despite a sequential decline from year-end 2025. Operating cash flow nearly doubled YoY ($8.63B vs $4.70B), a strong improvement driven by revenue growth and working capital management. This provides substantial liquidity for the elevated capex program.
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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.
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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.
Capex more than doubled YoY ($8.28B vs $3.89B H1), reversing the prior year's decline. The increase reflects the company's pivot toward AI infrastructure, compute clusters (Cortex), and semiconductor/solar manufacturing expansion, as detailed in the updated capex guidance.
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Owing and subject to the foregoing as well as the pipeline of announced projects under development, all other continuing infrastructure growth and varying levels of inflation, we currently expect our capital expenditures to exceed $9.00 billion in 2025.
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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 new guidance is driven by AI initiatives (compute infrastructure, data centers), manufacturing expansion, and the company-operated Robotaxi fleet. This represents a major shift in capital allocation toward AI and autonomous infrastructure.
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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 ongoing expansion and refinement of the Robotaxi service following its June 2025 launch (which was announced in the baseline filing). The company is now scaling the service and developing dedicated infrastructure (cleaning, maintenance, charging, teleoperations, fleet management) to support growth. This is a new operational phase beyond the initial launch.
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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. ... 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.
Tesla began production of Cybercab (the purpose-built Robotaxi vehicle) in H1 2026 and is preparing for large-scale production of Optimus, its humanoid robot. The baseline filing listed Cybercab as "Construction" status; the current filing confirms production has started. Optimus is now described as moving toward large-scale production, not just development.
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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.
Tesla is expanding Cortex, its AI training cluster at Gigafactory Texas, and broadening manufacturing to include semiconductor and solar fabrication. This vertical integration into semiconductors and solar is new disclosure, supporting the AI and energy storage roadmap. The Cortex expansion is a key driver of the elevated capex guidance.
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Additionally, we invested $2.00 billion in SpaceX common stock during the six months ended June 30, 2026. ... 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.
Tesla invested $2.0 billion in SpaceX common stock in March 2026, a new related-party investment. The investment contributed a mark-to-market gain to Other Income in Q2 2026. This is a significant capital allocation decision and a new related-party relationship disclosed in the current period.
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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) following enactment of SB 122, resulting in a $274 million tax benefit in Q2 2026. This reduced the effective tax rate from 23% to 15% for Q2 and from 25% to 22% for H1. The release reflects improved confidence in California taxable income realization.
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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.
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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.
Automotive sales revenue reversed from an 18% YoY decline in H1 2025 to a 24% YoY increase in H1 2026. The current period benefited from 18% higher cash deliveries (vs. a 95k unit decline in the prior year), higher ASP driven by sales mix and favorable FX, and increased FSD subscription revenue. The prior year's factory downtime for Model Y changeover is now in the baseline comparison, providing an easier comp.
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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.
Regulatory credits revenue continued to decline YoY, with a sharper drop in Q2 2026 (67% decline) than in Q2 2025 (51% decline). The current filing adds new language: "Recent governmental and regulatory actions have restricted certain regulatory credit programs tied to our products." This suggests policy changes (likely related to the OBBBA or other federal/state actions) are reducing credit availability or value, beyond normal supply/demand fluctuations.
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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.
Services and other revenue growth accelerated sharply (50% Q2, 46% H1 in 2026 vs. 17% Q2, 16% H1 in 2025). The current period highlights used vehicle sales volume and ASP as primary drivers, alongside maintenance, collision, and Supercharging. The baseline period listed a broader mix including insurance and parts. The acceleration suggests stronger used vehicle market performance and higher Supercharging utilization (likely from NACS adoption by other OEMs).
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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. ... 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.
Energy storage gross margin declined sharply in Q2 2026 (20.4% vs. 30.3% in Q2 2025), reversing the prior year's improvement. The current filing attributes this to deployment mix and unfavorable warranty adjustments, as well as higher average cost per MWh. This suggests pricing pressure, product mix shift toward lower-margin projects, or cost inflation (potentially tariff-related) impacting the segment.
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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.
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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.
R&D expense growth remained elevated (49% Q2, 44% H1 in 2026 vs. 48% Q2, 35% H1 in 2025), driven by AI programs and stock-based compensation. Stock-based comp increases accelerated ($189M Q2, $334M H1 in 2026 vs. $129M Q2, $194M H1 in 2025), reflecting higher equity awards (likely tied to the 2025 CEO Performance Award and AI hiring). R&D as % of revenue increased to 8-9% in 2026 from 7% in 2025.
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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 expense increased 45% YoY in Q2 2026, with $283M of the increase attributed to stock-based compensation related to the 2025 CEO Performance Award. This is new disclosure of a specific CEO award impacting SG&A. The award also contributed to higher non-deductible stock-based comp in the tax provision. Litigation-related expenses increased $109M, suggesting ongoing or new legal matters.
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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.
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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.
Financing cash flow reversed from $554M outflow in H1 2025 to $1.21B inflow in H1 2026, driven by $1.63B higher debt issuance and $207M lower debt repayment. This suggests Tesla is tapping debt markets to fund the elevated capex program, reversing the prior year's net debt paydown. Outstanding debt increased from $6.98B (June 2025) to $9.08B (June 2026).
Show 1 minor / wording change
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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 filing disclosed a $583 million restructuring charge in Q2 2024 (employee terminations). The current filing contains no restructuring line item or disclosure, indicating the restructuring was a one-time event in 2024 and is no longer impacting results. This is a lifecycle removal — the event was completed and is no longer current news.
Notes
New CEO equity awards, SpaceX investment, California tax valuation release, tariff refund disclosure, and expanded litigation updates.
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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 implements a "no double dip" principle — the CEO cannot hold both awards simultaneously. No expense was recognized for the interim award before forfeiture.
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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).
In April 2026, the CEO exercised approximately 304 million stock options from the 2018 CEO Performance Award (net-settled for 17.5 million shares). The Implementation Agreement adds a service-based vesting condition — the CEO must remain in service through January 19, 2028, and the shares carry a five-year holding period after vesting. No incremental stock-based compensation expense will be recorded during the additional service period.
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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.
In September 2025, the Board granted the CEO a new performance-based award of approximately 423.7 million shares (shareholder-approved November 2025). The award has 12 tranches tied to market-cap milestones ($2.0 trillion to $8.5 trillion) and operational milestones (vehicle deliveries, FSD subscriptions, bots, Robotaxis, Adjusted EBITDA targets). As of June 30, 2026, one operational milestone (20 million Tesla vehicles delivered) is considered probable, with $9.82 billion of unrecognized expense to be recognized over 9.2 years. The company recorded $267 million and $527 million of expense in Q2 and H1 2026, respectively. The remaining milestones carry $105.82 billion to $120.37 billion of unrecognized expense, not yet probable.
Added in current filing · view 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.
In March 2026, Tesla invested $2.00 billion in SpaceX common stock (less than 1% ownership). The investment was originally described as a preferred share investment in xAI but is now SpaceX common stock. Tesla accounts for it using the equity method (presumed significant influence because the CEO leads both companies) but elected the fair value option under ASC 825. Fair value is determined quarterly based on market observable inputs, with unrealized gains/losses recorded in Other income, net. The investment is presented in Other non-current assets.
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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.
In Q2 2026, following enactment of California Senate Bill 122 and reassessment of positive/negative evidence, Tesla concluded its California deferred tax assets (excluding R&D credits) are more likely than not realizable. The company released the valuation allowance, resulting in a $274 million income tax benefit in Q2 2026. This contributed to the effective tax rate declining to 15% for Q2 2026 (from 23% in Q2 2025).
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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.
In February 2026, the U.S. Supreme Court invalidated certain tariffs under IEEPA. Tesla may be eligible for refunds of tariffs previously paid on imported goods, but the company will not recognize any receivable until amounts are realized or realizable. Tesla also notes potential revenue reductions if it must refund certain energy storage customers under contractual obligations.
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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.
In August 2025, a Florida jury awarded $129 million in compensatory damages (33% Tesla fault) and $200 million in punitive damages in a product liability case involving Autopilot and a 2019 fatal accident. Tesla's post-trial motions were denied in February 2026, and the company filed an appeal to the Eleventh Circuit in July 2026. Tesla has recorded an immaterial accrual and believes the damages are not justified by the facts and law.
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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.
In August 2025, a proposed securities class action was filed in Texas federal court alleging material misrepresentations about Autopilot, FSD (Supervised), and Robotaxi effectiveness in public filings. The class period is April 19, 2023, to June 22, 2025. Plaintiffs amended the complaint in February 2026; Tesla moved to dismiss in April 2026; plaintiffs responded in June 2026. The case is in the motion-to-dismiss phase.
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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.
In June 2026, a new proposed consumer class action was filed in California federal court alleging misrepresentations about Tesla's driver assistance technology capabilities. The complaint seeks damages and other relief on behalf of consumers who purchased or leased Tesla vehicles. The case is in its early stages.
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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.
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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.
Remaining performance obligations for automotive regulatory credits (contracts longer than one year) declined from $3.47 billion at June 30, 2025, to $287 million at June 30, 2026 — a $3.18 billion decrease. The baseline filing noted a $1.11 billion quarter-over-quarter decrease in Q2 2025 due to repealed/restricted regulatory credit programs. The current filing states "Recent governmental and regulatory actions have restricted certain regulatory credit programs tied to our products" but does not quantify the year-over-year decline. This reflects continued regulatory headwinds on credit programs.
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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. Changes in government and economic incentives or tariffs may impact the transaction price or our ability to execute these existing contracts.
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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. Changes in government and economic incentives or tariffs may impact the transaction price or our ability to execute these existing contracts.
Energy generation and storage remaining performance obligations (contracts longer than one year) declined from $10.38 billion at June 30, 2025, to $10.05 billion at June 30, 2026 — a $330 million decrease. The amount expected to be recognized in the next 12 months declined from $5.47 billion to $4.56 billion. The disclosure language about government incentives and tariffs is unchanged.
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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.
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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 $4.07 billion and $3.45 billion as of June 30, 2026 and December 31, 2025, respectively.
Maximum exposure on resale value guarantees (provided to commercial banking partners in certain vehicle leasing programs) increased from $2.46 billion at June 30, 2025, to $4.07 billion at June 30, 2026 — a $1.61 billion increase. The recorded guarantee liabilities remain immaterial in both periods. The increase reflects growth in the leasing programs covered by these guarantees.
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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 · view on EDGAR →
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 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 $635 million in Q2 2025 to $1,151 million in Q2 2026 (81% increase), and from $1,208 million in H1 2025 to $2,181 million in H1 2026 (81% increase). The increase is primarily driven by the 2025 CEO Performance Award ($267 million in Q2 2026, $527 million in H1 2026) and other performance-based grants ($138 million in Q2 2026, $274 million in H1 2026, up from $54 million and $92 million in the prior year). The 2025 CEO Performance Award is a new, large-scale equity award with $9.82 billion of unrecognized expense for the one probable milestone (to be recognized over 9.2 years) and $105.82 billion to $120.37 billion for milestones not yet probable.
Previous filing · verify on EDGAR →
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 declined to 15% in Q2 2026 (from 23% in Q2 2025) and to 22% for H1 2026 (from 25% in H1 2025). The decrease is primarily due to the $274 million benefit from releasing the California deferred tax asset valuation allowance (following enactment of SB 122) and changes in jurisdictional earnings mix, partially offset by non-deductible stock-based compensation expense related to the 2025 CEO Performance Award.
Previous filing · verify on EDGAR →
Litigation Relating to 2018 CEO Performance Award ... 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.
Current filing · verify on EDGAR →
Certain Derivative Lawsuits in Delaware ... On April 2, 2026, these cases were reassigned to a different judge. On April 13, 2026, the Court granted Tesla’s motions to dismiss and dismissed the cases. In May 2026, plaintiffs in the consolidated and coordinated cases appealed to the Delaware Supreme Court the decision granting Tesla’s motion to dismiss.
The 2018 CEO Performance Award litigation has two separate tracks. The original Tornetta case (challenging the 2018 award) remains on appeal to the Delaware Supreme Court (fully briefed as of May 2025, no oral argument date set). Separately, three derivative lawsuits filed in 2024 (involving Elon Musk, X Corp., and xAI) were dismissed by the Delaware Court of Chancery in April 2026; plaintiffs appealed to the Delaware Supreme Court in May 2026. The current filing updates the status of the derivative cases (dismissed, now on appeal) but does not update the Tornetta appeal status.
Previous filing · verify on EDGAR →
On May 6, 2025, the plaintiff filed a motion for class certification, which has been fully briefed, and a hearing is scheduled for August 12, 2025.
Current filing · verify on EDGAR →
On May 6, 2025, the plaintiff filed a motion for class certification, which Tesla opposed, and on August 18, 2025, the Court certified a limited class comprised of California consumers who are not subject to an arbitration agreement. On September 1, 2025, Tesla filed a petition in the United States Court of Appeals for the Ninth Circuit for permission to appeal the class certification order, and on December 18, 2025, the Ninth Circuit granted Tesla’s petition. On January 5, 2026, the district court stayed the case pending resolution of the proceedings before the Ninth Circuit. The appeal has been fully briefed by the parties, and oral argument is set for August 31, 2026.
The Autopilot/FSD consumer class action in the Northern District of California advanced significantly. In August 2025, the court certified a limited class of California consumers not subject to arbitration agreements. Tesla appealed the class certification order to the Ninth Circuit (petition granted December 2025), and the district court stayed the case in January 2026. The appeal is fully briefed, with oral argument scheduled for August 31, 2026. The baseline filing showed the case at the class certification briefing stage; the current filing shows class certification granted, appealed, and stayed pending Ninth Circuit review.
Added in current filing · view on EDGAR →
Purchase of SpaceX equity investment (2,002) —
The cash flow statement for H1 2026 includes a new line item "Purchase of SpaceX equity investment" of $2,002 million (investing activities). This corresponds to the $2.00 billion investment in SpaceX common stock disclosed in Note 13 (Related Party Transactions). The baseline filing did not include this line item.
Added in current filing · view on EDGAR →
SpaceX equity investment unrealized gain (1,005) —
The cash flow statement for H1 2026 includes a new line item "SpaceX equity investment unrealized gain" of $1,005 million (operating activities, adjustment to reconcile net income to cash provided by operating activities). This reflects the unrealized gain on the SpaceX equity investment (fair value option elected under ASC 825), which is recorded in Other income, net on the income statement but is a non-cash item for cash flow purposes. The baseline filing did not include this line item.
Removed from previous filing · verify on EDGAR →
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 baseline filing disclosed the enactment of H.R.1 (OBBBA) on July 4, 2025, which introduced tax law changes (R&D expenses, capital expenditures, international earnings taxation) and repealed/accelerated sunset of certain Inflation Reduction Act tax credits, plus eliminated penalties for violations of certain regulatory credit programs. Tesla was evaluating the impact, including potential loss of regulatory credit sales. The current filing does not mention OBBBA, suggesting the evaluation is complete or the impact is now reflected in the financial statements (e.g., the decline in automotive regulatory credit remaining performance obligations from $3.47 billion to $287 million may partially reflect OBBBA's impact).
Show 8 minor / wording changes
Previous filing · verify on EDGAR →
In connection with the settlement, Tesla received $277 million from certain directors and paid Plaintiff’s counsel fees of $176 million (which, as noted above, the Company is appealing) in the three months ended March 31, 2025. We have recorded a $31 million reversal of previously recognized stock-based compensation expense in association with the returned awards and increased our provision for income taxes in relation to the return of directors’ compensation. As the settlement was an equity transaction, the net impact to additional paid-in-capital was $110 million in the three months ended March 31, 2025.
Current filing · view on EDGAR → · paraphrased
Because neither Tesla's appeal nor the shareholder's appeal seeks to vacate the Settlement Agreement or materially modify its terms, the Company implemented the provisions of the Settlement Agreement in May 2025 by cancelling the options requiring cancellation under its terms.
The Directors' Compensation settlement was implemented in May 2025 (options cancelled as required). Tesla's appeal of the $176 million attorneys' fee award and a single shareholder's appeal of the settlement approval are both pending (fully briefed, no oral argument date set). The baseline filing disclosed the Q1 2025 financial impact ($277 million received, $176 million paid, $31 million stock-based compensation reversal, $110 million net impact to additional paid-in capital). The current filing confirms implementation occurred in May 2025 and that neither appeal seeks to vacate or materially modify the settlement terms.
Removed from previous filing · verify on EDGAR →
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 Autopilot/FSD securities class action (Northern District of California) is no longer disclosed in the current filing. The baseline filing showed the case dismissed in Tesla's favor (September 2024), with plaintiffs appealing to the Ninth Circuit (appeal fully briefed as of June 2025, awaiting oral argument). The current filing does not mention this case, suggesting it may have been resolved or is no longer considered material. However, a new securities class action was filed in August 2025 in the Western District of Texas (disclosed in the current filing) with similar allegations but a different class period (April 2023 to June 2025).
Removed from previous filing · verify on EDGAR →
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 antitrust/repair services class action (filed March 2023, Northern District of California) was dismissed with prejudice in June 2025 pursuant to a stipulated motion. The baseline filing disclosed this dismissal; the current filing does not mention the case, consistent with its resolution.
Removed from previous filing · verify on EDGAR →
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.
The data incident class action (filed August 2023, Northern District of California, related to misappropriated data reported by a foreign news outlet in Q2 2023) is no longer disclosed in the current filing. The baseline filing described the incident and the putative class action; the current filing does not mention it, suggesting the case may have been resolved or is no longer considered material.
Previous filing · view on EDGAR →
Solar energy systems, net 4,788 4,924
Current filing · view 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 balance declined from $4,788 million at June 30, 2025, to $4,510 million at June 30, 2026. This reflects a reclassification or broadening of the asset category to include both solar and storage systems, consistent with the segment name.
Removed from previous filing · view on EDGAR →
Intangible assets, net 138 150 ... Goodwill 258 244
The balance sheet line items "Intangible assets, net" and "Goodwill" (present in the baseline filing) are absent from the current filing. The baseline showed $138 million of intangible assets and $258 million of goodwill at June 30, 2025. The current filing does not disclose these line items, suggesting they may have been fully amortized, impaired, or reclassified into other non-current assets. The absence is not explained in the notes.
Previous filing · view on EDGAR →
Payment of legal fees associated with shareholder settlement (176) —
Current filing · view on EDGAR →
Recovery (payment) of legal fees associated with shareholder settlement 116 (176)
The cash flow statement for H1 2026 shows a $116 million recovery of legal fees associated with the shareholder settlement (financing activities), compared to a $176 million payment in H1 2025. The current filing labels the line item "Recovery (payment) of legal fees associated with shareholder settlement," indicating the company recovered $116 million in H1 2026 (likely related to the Directors' Compensation settlement appeal or other settlement-related adjustments).
Added in current filing · verify on EDGAR →
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.
The current filing discloses a new accounting standard, ASU 2025-06 (issued September 2025), which simplifies the capitalization guidance for internal-use software by removing prescriptive project stages. The standard is effective for annual periods beginning after December 15, 2027 (early adoption permitted). Tesla does not expect a material impact on its consolidated financial statements.
Risk Factors
Q2 2026 removes prior-quarter risk factor on government incentives for EVs and energy products; no new risks added.
Show 1 minor / wording change
Removed from previous filing · view 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.
Prior quarter disclosed material-changes risk on government incentives (EV tax credits, charging infrastructure credits, solar/storage rebates, net metering) being repealed or restricted. Q2 2026 Item 1A reverts to boilerplate reference to annual 10-K only, omitting this update. Per 10-Q framing, non-repetition is presentational — the 10-K version still stands and the risk has not been rescinded.
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Financial Statements
Primary statements from SEC XBRL (companyfacts). Labels and figures as reported — not generated by the model.
Consolidated Statements of Operations (Unaudited)
| Description | Q2 ended Jun 30, 2026 | Q2 ended Jun 30, 2025 |
|---|---|---|
| Revenue: | ||
| Total revenue / net sales | 28,236 | 22,496 |
| Cost of revenue / cost of sales | 23,485 | 18,618 |
| Gross profit | 4,751 | 3,878 |
| Operating expenses: | ||
| Research and development | 2,371 | 1,589 |
| Selling, general and administrative | 1,982 | 1,366 |
| Total operating expenses | 4,353 | 2,955 |
| Operating income | 398.0 | 923.0 |
| Interest expense | 81.0 | 86.0 |
| Other income/(expense), net | 590.0 | 320.0 |
| Income before income taxes | 1,329 | 1,549 |
| Income tax expense/(benefit) | 201.0 | 359.0 |
| Net income | 1,114 | 1,172 |
| Basic earnings per share | 0.34 | 0.36 |
| Diluted earnings per share | 0.32 | 0.33 |
Consolidated Balance Sheets (Unaudited)
| Description | Jun 30, 2026 | Jun 30, 2025 |
|---|---|---|
| Current assets: | ||
| Cash and equivalents | 15,219 | 15,587 |
| Short-term investments | 28,305 | 21,195 |
| Accounts receivable, net | 4,087 | 3,838 |
| Inventories | 5,929 | 6,388 |
| Prepaid expenses and other current assets | 7,395 | 5,943 |
| Other current assets | 7,823 | 8,182 |
| Total current assets | 68,758 | 61,133 |
| Property, plant and equipment, net | 38,574 | |
| Operating lease right-of-use assets, net | 6,386 | 5,633 |
| Identifiable intangible assets, net | 138.0 | |
| Goodwill | 258.0 | |
| Deferred income taxes and other assets | 7,235 | 6,721 |
| Other long-term assets | 66,145 | 16,110 |
| TOTAL ASSETS | 148,524 | 128,567 |
| Current liabilities: | ||
| Current portion of long-term debt | 1,340 | 1,962 |
| Accounts payable | 15,324 | 13,212 |
| Current portion of operating lease liabilities | 1,022 | 892.0 |
| Accrued liabilities | 2,025 | 1,613 |
| Income taxes payable | 1,451 | 1,051 |
| Deferred revenue, current | 3,427 | 3,237 |
| Other current liabilities | 10,836 | 8,041 |
| Total current liabilities | 35,425 | 30,008 |
| Long-term debt | 7,721 | 4,994 |
| Operating lease liabilities | 5,716 | 5,022 |
| Deferred income taxes and other liabilities | 13,583 | 11,543 |
| Other long-term liabilities | (1,440) | (1,072) |
| Total liabilities | 61,005 | 50,495 |
| Redeemable preferred stock | 54.0 | 61.0 |
| Shareholders' equity: | ||
| Common stock | 4.0 | 3.0 |
| Capital in excess of stated value | 45,859 | 40,363 |
| Accumulated other comprehensive income (loss) | 401.0 | 158.0 |
| Retained earnings (deficit) | 40,594 | 36,790 |
| Total shareholders' equity | 86,858 | 77,314 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 148,524 | 128,567 |
Consolidated Statements of Cash Flows (Unaudited)
| Description | Six months ended Jun 30, 2026 | Six months ended Jun 30, 2025 |
|---|---|---|
| Operating Activities: | ||
| Net cash from operating activities | 8,634 | 4,696 |
| Investing Activities: | ||
| Net cash from investing activities | (10,951) | (4,595) |
| Financing Activities: | ||
| Net cash from financing activities | 1,209 | (554.0) |
| Net increase/(decrease) in cash | (1,191) | (302.0) |
Amounts in millions USD; EPS as reported. Line labels are presentation-friendly mappings of filer XBRL tags — not a re-audit of the full statements. Use EDGAR for interactive notes and detail. Interactive statements & notes on EDGAR ↗
Source-verified from EDGAR · Narrative written by AI · Jul 23, 2026 · How we verify