Latest quarter

Tesla reported Q2 FY2026 revenue of $28.2 billion, which was $25.8 billion as the consensus estimated and 9.41% above that consensus. The company reported adjusted EPS, as the consensus counts it, of $0.33, compared with a consensus of $0.50; the reported measure was −34.0% against the consensus.

Tesla’s filing reported that revenue increased 25.5% from Q2 FY2025, while net income declined to $1.1 billion from $1.2 billion and diluted EPS declined to $0.32 from $0.33. The filing attributed the increase in automotive sales revenue to approximately 25% higher cash deliveries, while services and other revenue rose on used-vehicle sales, non-warranty maintenance and collision work, and paid Supercharging sessions. Energy generation and storage revenue increased with Megapack deployments, partly offset by lower average selling prices per unit and fewer Powerwall deployments.

Tesla reported gross margin of 16.8%, compared with 17.2% a year earlier, and operating margin of 1.41%, compared with 4.10%. The company reported operating cash flow of $4.7 billion and free cash flow of −$1.1 billion. The company’s guidance outcome for the quarter was not available.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Tesla did not make a latest earnings-call transcript available, so the company’s filing provides the available management commentary rather than call remarks, analyst questions or answers. The filing said rapidly evolving trade and fiscal policy and geopolitical conflicts continued to create uncertainty for automotive and energy markets, with potential effects on its supply chain, costs, demand and profitability. Tesla said the current tariff regime would have a relatively larger effect on energy generation and storage than on automotive.

The filing said automotive sales revenue increased because cash deliveries rose by approximately 25% from a year earlier. Tesla said services and other revenue increased because of higher used-vehicle sales volume and average selling price, non-warranty maintenance and collision revenue, and paid Supercharging sessions. The company attributed energy generation and storage revenue growth mainly to more Megapack deployments, while citing lower Megapack average selling prices and fewer Powerwall deployments as offsets.

Tesla said total automotive gross margin declined from 17.2% to 16.9% in the quarter, including a decrease in automotive regulatory-credit revenue. The filing reported that energy generation and storage gross margin declined from 30.3% to 20.4%, primarily because of changes in revenue and costs, including a higher average cost per MWh driven by sales mix and unfavorable warranty adjustments.

The company said it was expanding manufacturing capacity, vertically integrating battery and semiconductor supply chains, and investing in research and development for AI, software and fleet-based activities. Tesla said those investments would negatively affect profitability during this phase. The filing also said competition, consumer trends, inflation, energy prices, interest rates, trade policy and supplier conditions could affect vehicle pricing, order rates and operating margin.

Tesla said it began Cybercab production in the first half of 2026 and continued ramps at new battery and material factories. The filing said the pace of capital spending could vary with project priorities, milestones, production adjustments, capital efficiencies and new projects, and it did not quantify outcomes for demand, pricing, margins or the quarter ahead.

Guidance

Tesla’s filing said it currently expects capital expenditures to be in excess of $25 billion in 2026, driven by AI initiatives, manufacturing and R&D facilities, company-operated AI-enabled assets, and its retail, service and charging footprint. The company said changes in trade policy could require adjustments to project timelines and affect capital-expenditure expectations. Management’s guidance materials and any previous guidance against which to identify changes were not available.

How analysts reacted

Analysts’ price targets: $24.86 to $550.00, $410.00 on average (as of 18 October 2026).

Rating and price-target actions since the results on 22 July 2026: