Tesla Hits $28.2 Billion Revenue in Q2 as Production Begins for Cybercab

Tesla reported its second-quarter financial results for 2026, generating $28.236 billion in revenue, up 26 percent compared to the same period last year. The electric vehicle maker also crossed $100 billion in revenue on a trailing twelve-month basis for the first time.

Net income attributable to common stockholders reached $1.114 billion. Operating income dropped 57 percent year-over-year to $398 million, resulting in an operating margin of 1.4 percent. The lower operating margin was impacted by reduced vehicle average selling prices and higher operating expenses related to artificial intelligence and research projects.

Vehicle deliveries set a new second-quarter record at 480,126 units, representing a 25 percent increase year-over-year. Total vehicle production rose 10 percent to 451,758 units. Deliveries were led by Model 3 and Model Y at 467,762 vehicles, while other models accounted for 12,364 deliveries. Delivery records were achieved in several international markets, including South Korea, Australia, Japan, Taiwan, Thailand, Portugal, the Philippines, Chile, Colombia, Slovenia, and Lithuania. The company also launched the Model YL in the United States in July.

On the autonomous vehicle front, Tesla began production of the Cybercab at Gigafactory Texas, offering campus rides for employees and starting engineering road tests. Tesla expanded its unsupervised Robotaxi service area in Austin and launched unsupervised rides in Miami, Orlando, and Tampa, bringing its live coverage to seven major metropolitan areas. Testing and first responder training are underway to prepare for additional American markets.

Full Self-Driving (FSD) adoption saw record growth, with over half of new North American vehicle deliveries opting for an FSD subscription at purchase. Overseas expansion continued with new approvals in Belgium, Denmark, Estonia, and Lithuania, where drivers have logged more than 50 million kilometres on the software. On the software side, Tesla began rolling out FSD v14 lite for AI3 hardware, while its Summer Release introduced shared in-app self-driving stats, expanded Grok voice controls, and automated navigation.

Robotics and manufacturing saw significant facility changes as Tesla decommissioned Model S and Model X assembly lines in Fremont to build first-generation production lines for the Optimus humanoid robot. Initial Optimus builds will be used for training data collection in the Optimus Academy. Production site development for Optimus at Gigafactory Texas is also in full swing. Meanwhile, Tesla Semi remains on track for volume production in Nevada this year.

Energy storage deployments grew 41 percent year-over-year to 13.5 GWh, driven by record deployments in Europe, the Middle East, and Africa, as well as an increased production ramp at Megafactory Shanghai. Construction on Megafactory Texas is nearing completion, with production of Megapack 3 and Megablock planned for later this year. Tesla also introduced the Powerwall 3P for three-phase homes in Germany. Services and Other revenue jumped 50 percent to $4.581 billion, setting a record gross profit of $648 million.

To support its software and hardware push, Tesla doubled its onsite AI training compute capacity in Texas during the first half of 2026 with the Cortex 2 cluster. Progress continues on its semiconductor fab in Austin, battery cell production, cathode materials, lithium refining in Texas, and 4680 cell manufacturing for Cybercab, Tesla Semi, and Model Y. The company added more than 2,400 net new Supercharger stalls, expanding its network by 17 percent year-over-year.

Capital expenditures reached $5.789 billion for the quarter. Free cash flow stood at negative $1.092 billion, while total cash, cash equivalents, and short-term investments ended at $43.524 billion. Tesla stated that scaling its autonomous and AI initiatives will be non-linear, but expressed strong optimism regarding its long-term strategy.