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Get filing alertsTesla's second-quarter revenue rose 25.5% to $28.24B, but operating income fell 56.9% to $398.0M as surging AI and robotics spending outweighed higher deliveries.
Filed July 23, 2026 · Period ending June 30, 2026 · Compared to 10-Q Jul 24, 2025 · ~1 min read
Key Financials
SEC XBRL| Metric | PriorJun 30, 2025 | CurrentJun 30, 2026 | Δ |
|---|---|---|---|
| Revenue | $22.5B | $28.2B | ▲ +25.5% |
| Net income | $1.17B | $1.11B | ▼ -4.9% |
| 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 Changes
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Total revenue increased 25.5% to $28.24B in Q2, and automotive segment revenue rose 27.4% to $25.10B.
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high
Operating income dropped 56.9% to $398.0M; research and development expense climbed 49.2% to $2.37B and selling, general and administrative expense rose 45.1% to $1.98B.
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Net income attributable to common stockholders slipped 4.9% to $1.11B, or $0.32 per diluted share, from $0.33 a year earlier.
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Operating cash flow for the first half surged 83.9% to $8.63B, while capital expenditures more than doubled to $8.28B.
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The company ended the quarter with $15.22B in cash and equivalents and $28.31B in short-term investments, down $1.29B and up $759.0M, respectively, from year-end 2025.
Summary
Tesla's second-quarter revenue rose 25.5% to $28.24B, and automotive segment revenue increased 27.4% to $25.10B. The company attributes the automotive sales increase to an increase of approximately 25% in cash deliveries. Services and other revenue jumped 50.4% to $4.58B. Energy generation and storage segment revenue grew 12.5% to $3.14B, primarily due to an increase in Megapack deployments, partially offset by a lower average selling price per Megapack unit and a decrease in Powerwall deployments.
Operating income fell 56.9% to $398.0M; research and development expense rose 49.2% to $2.37B and selling, general and administrative expense increased 45.1% to $1.98B. The filing attributes the R&D increase 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. Net income attributable to common stockholders declined 4.9% to $1.11B, or $0.32 per diluted share. The effective tax rate fell to 15.0% from 23.0%, primarily due to the release of the valuation allowance on our California deferred tax assets other than research and development tax credits.
Cash generation strengthened even as capital spending accelerated. Operating cash flow for the first six months rose 83.9% to $8.63B, while capital expenditures increased 113.1% to $8.28B. The company ended the quarter with $15.22B in cash and equivalents and $28.31B in short-term investments. Tesla expects 2026 capital expenditures to be in excess of $25 billion.
Section-by-Section Diff
MD&A
Tesla's MD&A now emphasizes AI and robotics, reports a SpaceX equity investment, and discloses a tax benefit from releasing a California deferred tax valuation allowance.
Added in current filing · verify on EDGAR →
Additionally, we invested $2.00 billion in SpaceX common stock during the six months ended June 30, 2026.
Tesla made a new investment in SpaceX common stock, a related party transaction that increases exposure to Elon Musk's other ventures.
Added in current filing · verify on EDGAR →
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 the valuation allowance resulted in an income tax benefit, significantly lowering the effective tax rate for the quarter.
Previous filing · verify on EDGAR →
we currently expect our capital expenditures to exceed $9.00 billion in 2025.
Current filing · verify on EDGAR →
We currently expect our capital expenditures to be in excess of $25 billion in 2026, driven by our AI initiatives, including investments in compute infrastructure and data centers
Capital expenditure guidance has increased substantially, reflecting massive investment in AI infrastructure.
Previous filing · verify on EDGAR →
In June 2025, we launched our Robotaxi service in Austin, capitalizing on our AI investments and scalable mobility infrastructure to advance a service-driven business model.
Current filing · verify on EDGAR →
We have continued to expand and refine our Robotaxi service after its June 2025 launch, capitalizing on our AI investments and scalable mobility infrastructure to advance a service-driven business model.
The Robotaxi service has moved from a single-city launch to ongoing expansion and refinement, indicating progress in scaling the autonomous ride-hailing business.
Added in current filing · verify on EDGAR →
In 2025, we introduced Megapack 3 and Megablock, our next-generation industrial storage product, and began manufacturing a new residential retrofit solar panel.
New energy storage products were introduced, which could drive future revenue growth in the energy segment.
Previous filing · verify on EDGAR →
We ended the second quarter of 2025 with $36.78 billion in cash and cash equivalents and investments, representing an increase of $219 million from the end of 2024.
Current filing · verify on EDGAR →
We ended the second quarter of 2026 with $43.52 billion in cash and cash equivalents and short-term investments, representing a decrease of $535 million from the end of 2025.
Total cash and investments increased year-over-year, but the current period shows a decrease from year-end 2025, reflecting heavy capital spending.
Show 1 minor / wording change
Previous filing · verify on EDGAR →
The current tariff regime will have a relatively larger impact on our energy generation and storage business compared to our automotive business.
Current filing · verify on EDGAR →
The current tariff regime will have a relatively larger impact on our energy generation and storage business compared to our automotive business.
The statement remains unchanged, but the context of tariffs has evolved; no material change in this risk disclosure.
Risk Factors
The risk factors section was substantially shortened, removing detailed risk disclosures about government incentives and net metering.
Removed from previous filing · verify on EDGAR →
Demand for our products and services and our financial results may be impacted by the status of government and economic incentives supporting the development and adoption of such products.
The current filing removes the entire risk factor discussing the impact of government and economic incentives on demand for Tesla's products, including tax credits, rebates, and net metering.
Removed from previous filing · verify on EDGAR →
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 current filing removes the detailed discussion of net metering risks, including potential reductions or eliminations of bill credits for solar energy system owners.
Show 1 minor / wording change
Previous filing · verify on EDGAR →
including the factors discussed in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024, and Part II, Item 1A, Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which could adversely affect our business, financial conditions and future results.
Current filing · verify on EDGAR →
including the factors discussed in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025, which could adversely affect our business, financial conditions and future results.
The current filing updates the reference to the most recent Annual Report on Form 10-K and removes the reference to the Q1 2025 10-Q risk factors, indicating that the risk factors from the Q1 2025 10-Q are no longer incorporated by reference.
Legal Proceedings
Tesla's legal proceedings section reflects significant developments, including the dismissal of certain derivative lawsuits, new class actions, and a Supreme Court ruling on tariffs.
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.
The current filing adds a new discussion about a potential tariff refund following a Supreme Court ruling, which could impact future results but is not yet recognized due to uncertainty.
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 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 derivative lawsuits were dismissed in April 2026, but plaintiffs have appealed to the Delaware Supreme Court, keeping the matter ongoing.
Previous filing · verify on EDGAR →
The case is currently in discovery. No trial date is set but is expected to occur during 2026.
Current filing · verify on EDGAR →
The first phase of the trial is currently set for September 21, 2026.
The California Civil Rights Department lawsuit now has a specific trial date of September 21, 2026, whereas previously no date was set.
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 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 class action regarding driver assistance technology has progressed: the district court stayed the case pending appeal, and oral argument is scheduled for August 31, 2026.
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.
A new securities class action was filed in August 2025 alleging misrepresentations about Autopilot and FSD, expanding Tesla's litigation exposure.
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.
Another proposed class action was filed in June 2026 regarding driver assistance technology claims, adding to ongoing litigation.
Removed from previous filing · verify on EDGAR →
Litigation Relating to 2018 CEO Performance Award
The section on the 2018 CEO Performance Award litigation has been removed from the current filing.
Notes
Tesla's notes now disclose a new SpaceX equity investment, a 2025 CEO Performance Award with significant unrecognized stock-based compensation, and a tax benefit from releasing a California valuation allowance.
Added in current filing · verify on EDGAR →
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.
Tesla made a new investment in SpaceX common stock in March 2026, accounted for under the equity method with a fair value option. The investment is presented in Other non-current assets and unrealized gains and losses are recorded in Other income, net.
Added in current filing · verify on EDGAR →
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.
A new 2025 CEO Performance Award was granted to Elon Musk, consisting of approximately 423.7 million shares of performance-based restricted stock. As of June 30, 2026, unrecognized stock-based compensation expense for operational milestones not probable of achievement ranges from $105.82 billion to $120.37 billion, with $9.82 billion for the probable milestone.
Added in current filing · verify on EDGAR →
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.
Previous filing · verify on EDGAR →
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.
Current filing · verify on EDGAR →
As of June 30, 2026, total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an original expected length of more than one year was $287 million.
The remaining performance obligations for automotive regulatory credits dropped significantly.
Previous filing · verify on EDGAR →
Our maximum exposure on the guarantees we provide if they are unable to sell the vehicle at or above the vehicle’s contractual residual value at the end of the lease term was $2.46 billion and $1.45 billion as of June 30, 2025 and December 31, 2024, respectively.
Current filing · verify on EDGAR →
Our maximum exposure on the guarantees we provide if they are unable to sell the vehicle at or above the vehicle’s contractual residual value at the end of the lease term was $4.07 billion and $3.45 billion as of June 30, 2026 and December 31, 2025, respectively.
The maximum exposure under resale value guarantees increased.
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.
Tesla added a new disclosure about a potential refund of tariffs previously paid under IEEPA following a U.S. Supreme Court ruling. The company will not recognize any receivable until amounts are realized or realizable.
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.
Tesla added disclosure of a jury verdict in a product liability trial involving Autopilot, with compensatory and punitive damages. The company has recorded an immaterial accrual and is appealing.
Show 1 minor / wording change
Previous filing · verify on EDGAR →
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.
Current filing · verify on EDGAR →
As of June 30, 2026, total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an original expected length of more than one year was $10.05 billion.
The remaining performance obligations for energy generation and storage decreased slightly, with a portion expected to be recognized in the next 12 months.
Financial Statements
Primary statements as printed on the EDGAR filing (iXBRL face). Companyfacts is used only when a statement is not on the HTML face. Not generated by the model.
Consolidated Statements of Operations (Unaudited)
(in millions, except per share data)
| Description | Three months ended June 30, 2026 | Three months ended June 30, 2025 | Six months ended June 30, 2026 | Six months ended June 30, 2025 |
|---|---|---|---|---|
| Revenues | ||||
| Automotive sales | 20,006 | 15,787 | 35,479 | 28,712 |
| Automotive regulatory credits | 146 | 439 | 526 | 1,034 |
| Automotive leasing | 364 | 435 | 745 | 882 |
| Total automotive revenues | 20,516 | 16,661 | 36,750 | 30,628 |
| Energy generation and storage | 3,139 | 2,789 | 5,547 | 5,519 |
| Services and other | 4,581 | 3,046 | 8,326 | 5,684 |
| Total revenues | 28,236 | 22,496 | 50,623 | 41,831 |
| Cost of revenues | ||||
| Automotive sales | 16,866 | 13,567 | 29,482 | 25,028 |
| Automotive leasing | 187 | 228 | 383 | 467 |
| Total automotive cost of revenues | 17,053 | 13,795 | 29,865 | 25,495 |
| Energy generation and storage | 2,499 | 1,943 | 3,955 | 3,888 |
| Services and other | 3,933 | 2,880 | 7,332 | 5,417 |
| Total cost of revenues | 23,485 | 18,618 | 41,152 | 34,800 |
| Gross profit | 4,751 | 3,878 | 9,471 | 7,031 |
| Operating expenses | ||||
| Research and development | 2,371 | 1,589 | 4,317 | 2,998 |
| Selling, general and administrative | 1,982 | 1,366 | 3,815 | 2,617 |
| Restructuring and other | — | — | — | 94 |
| Total operating expenses | 4,353 | 2,955 | 8,132 | 5,709 |
| Income from operations | 398 | 923 | 1,339 | 1,322 |
| Interest income | 422 | 392 | 856 | 792 |
| Interest expense | (81) | (86) | (173) | (177) |
| Other income, net | 590 | 320 | 55 | 201 |
| Income before income taxes | 1,329 | 1,549 | 2,077 | 2,138 |
| Provision for income taxes | 201 | 359 | 458 | 528 |
| Net income | 1,128 | 1,190 | 1,619 | 1,610 |
| Net income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | 14 | 18 | 28 | 29 |
| Net income attributable to common stockholders | 1,114 | 1,172 | 1,591 | 1,581 |
| Net income per share of common stock attributable to common stockholders | ||||
| Basic | 0.34 | 0.36 | 0.49 | 0.49 |
| Diluted | 0.32 | 0.33 | 0.45 | 0.45 |
| Weighted average shares used in computing net income per share of common stock | ||||
| Basic | 3,237 | 3,223 | 3,235 | 3,220 |
| Diluted | 3,540 | 3,519 | 3,538 | 3,520 |
Consolidated Balance Sheets (Unaudited)
(in millions, except per share data)
| Description | June 30, 2026 | December 31, 2025 |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 15,219 | 16,513 |
| Short-term investments | 28,305 | 27,546 |
| Accounts receivable, net | 4,087 | 4,576 |
| Inventory | 13,752 | 12,392 |
| Prepaid expenses and other current assets | 7,395 | 7,615 |
| Total current assets | 68,758 | 68,642 |
| Operating lease vehicles, net | 4,253 | 4,912 |
| Energy generation and storage systems, net | 4,510 | 4,604 |
| Property, plant and equipment, net | 47,255 | 40,643 |
| Operating lease right-of-use assets | 6,386 | 6,027 |
| Digital assets | 674 | 1,008 |
| Deferred tax assets | 7,235 | 6,925 |
| Other non-current assets | 9,453 | 5,045 |
| Total assets | 148,524 | 137,806 |
| Liabilities | ||
| Current liabilities | ||
| Accounts payable | 15,324 | 13,371 |
| Accrued liabilities and other | 15,256 | 13,279 |
| Deferred revenue | 3,427 | 3,424 |
| Current portion of debt and finance leases | 1,418 | 1,640 |
| Total current liabilities | 35,425 | 31,714 |
| Debt and finance leases, net of current portion | 7,924 | 6,736 |
| Deferred revenue, net of current portion | 4,073 | 3,631 |
| Other long-term liabilities | 13,583 | 12,860 |
| Total liabilities | 61,005 | 54,941 |
| Commitments and contingencies (Note 11) | ||
| Redeemable noncontrolling interests in subsidiaries | 54 | 58 |
| Equity | ||
| Stockholders’ equity | ||
| Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding | — | — |
| Common stock; $0.001 par value; 6,000 shares authorized; 3,949 and 3,751 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively | 4 | 3 |
| Additional paid-in capital | 45,859 | 42,770 |
| Accumulated other comprehensive income | 401 | 361 |
| Retained earnings | 40,594 | 39,003 |
| Total stockholders’ equity | 86,858 | 82,137 |
| Noncontrolling interests in subsidiaries | 607 | 670 |
| Total liabilities and equity | 148,524 | 137,806 |
Consolidated Statements of Cash Flows (Unaudited)
(in millions)
| Description | Six months ended June 30, 2026 | Six months ended June 30, 2025 |
|---|---|---|
| Cash Flows from Operating Activities | ||
| Net income | 1,619 | 1,610 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation, amortization and impairment | 3,209 | 2,880 |
| Stock-based compensation | 2,181 | 1,208 |
| Inventory write-downs | 187 | 248 |
| Foreign currency transaction net unrealized loss | 599 | 54 |
| Deferred income taxes | (301) | 9 |
| SpaceX equity investment unrealized gain | (1,005) | — |
| Digital assets unrealized loss (gain) | 334 | (159) |
| Non-cash interest and other operating activities | 33 | 73 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | 377 | 601 |
| Inventory | (1,663) | (2,407) |
| Operating lease vehicles | 260 | 65 |
| Prepaid expenses and other assets | (1,028) | (1,137) |
| Accounts payable, accrued and other liabilities | 3,341 | 1,333 |
| Deferred revenue | 491 | 318 |
| Net cash provided by operating activities | 8,634 | 4,696 |
| Cash Flows from Investing Activities | ||
| Purchases of property and equipment excluding finance leases, net of sales | (8,282) | (3,886) |
| Purchase of SpaceX equity investment | (2,002) | — |
| Purchases of short-term investments | (16,281) | (13,500) |
| Proceeds from maturities of short-term investments | 15,621 | 12,791 |
| Purchase of intangible assets | (7) | — |
| Net cash used in investing activities | (10,951) | (4,595) |
| Cash Flows from Financing Activities | ||
| Proceeds from issuances of debt | 4,679 | 3,050 |
| Repayments of debt | (3,922) | (4,129) |
| Debt issuance costs | (4) | (1) |
| Proceeds from exercises of stock options and other stock issuances, net of issuance costs | 468 | 528 |
| Principal payments on finance leases | (37) | (67) |
| Proceeds received from directors in shareholder settlement | — | 277 |
| Recovery (payment) of legal fees associated with shareholder settlement | 116 | (176) |
| Distributions paid to noncontrolling interests in subsidiaries | (91) | (36) |
| Net cash provided by (used in) financing activities | 1,209 | (554) |
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (83) | 151 |
| Net decrease in cash and cash equivalents and restricted cash | (1,191) | (302) |
| Cash and cash equivalents and restricted cash, beginning of period | 17,616 | 17,037 |
| Cash and cash equivalents and restricted cash, end of period | 16,425 | 16,735 |
| Supplemental Non-Cash Investing and Financing Activities | ||
| Acquisitions of property and equipment included in liabilities | 2,633 | 1,639 |
| Leased assets obtained in exchange for operating lease liabilities | 886 | 784 |
| Leased assets obtained in exchange for finance lease liabilities | 97 | — |
Amounts as printed on the EDGAR/iXBRL face — (in millions, except per share data); (in millions). Labels, columns, and figures are the filing face, not a GAAP stencil. Interactive statements & notes on EDGAR ↗
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