Gasgoo Munich- Tesla released its second-quarter 2026 earnings on July 23. Bolstered by global deliveries of over 480,000 vehicles, the automaker posted its best-ever performance for the period, up 25% from a year earlier. Total revenue climbed 26% to $28.2 billion, pushing trailing 12-month revenue past the $100 billion mark for the first time.
Shanghai Gigafactory delivered more than 89,000 vehicles in June and nearly 468,000 in the first half — a 28.4% annual surge — providing a strong foundation for the results.
Image source: Tesla
Profit margins felt the squeeze, with operating profit slipping to $398 million year-over-year. The decline stems largely from Tesla pouring resources into next-generation AI infrastructure and forward-looking manufacturing capabilities. Research and development spending hit $2.37 billion, while capital expenditure soared to $5.79 billion — jumping 49% and 142%, respectively.
Free cash flow briefly turned negative as the company doubled the size of its Texas computing cluster, expanded the Cortex 2 data center, and moved in parallel on dedicated production lines for humanoid robots and the Cybercab autonomous vehicle.
"We are massively expanding manufacturing capacity for advanced infrastructure — this will be the largest build-out in history," Elon Musk told analysts on the earnings call. These investments are viewed as the critical pivot point in Tesla's shift from automaker to AI technology company.
Image source: Tesla
New business lines are gaining traction. Paid users of Tesla's driver-assistance software reached 1.48 million, with adoption rates in North America hitting a record high — more than half of new vehicles are delivered with the service subscribed. In the U.S. and South Korea, older models equipped with AI3 hardware began receiving the v14 lite update, bringing driving behavior and safety closer to the latest standard. The Robotaxi service, operating without safety drivers, has expanded to seven U.S. cities, covering 600,000 kilometers without a major accident; recent launches include the Austin metropolitan area and three cities in Florida.
Image source: Tesla
Meanwhile, production of the Cybercab has officially begun at the Texas Gigafactory. The steering-wheel- and pedal-free model is set to become the backbone of the Robotaxi fleet. Fremont's former Model S/X line has been successfully repurposed for humanoid robots, with a planned annual capacity of 1 million units, while a second Texas line capable of 10 million units is slated to start production next summer.
The energy storage business is showing similar strength. Output at the Shanghai energy storage factory hit a record high, driving a surge in installations across the EMEA region, while the new Texas facility is set to begin producing third-generation Megapack systems later this year.
Image source: Tesla
Through four pillars — electric mobility, intelligent driving, humanoid robots, and clean energy — Tesla is building an ecosystem that spans the full spectrum of real-world AI applications.
Although short-term profits are under pressure from aggressive investment, rising deliveries and orders — coupled with the transition of new businesses from the lab to the factory floor — are building substantial momentum for the second half of 2026 and beyond.
