Tesla Q2 2026: Revenue Beats but EPS Misses 34% as Heavy Capex and Margin Pressure Weigh

Transcript intelligence

What changed

Revenue of $28.24B beat the $26.42B consensus estimate by 6.9%; EPS of $0.33 missed the $0.50 estimate by 34%; Record Q2 deliveries led by Model Y, now the best-selling vehicle globally; FSD attached to 55% of North American deliveries, expanding subscription revenue; Energy storage deployments grew 53% YoY, but gross margins fell on warranty true-ups and tariff changes; Stock fell approximately 14.5% in the reaction window on roughly 3x baseline volume

Guidance delta

Guidance sentiment was maintained relative to the prior quarter. Management continues to signal increasing capital expenditure with negative free cash flow expected through 2026, consistent with the prior quarter outlook. No formal guidance revision was indicated.

Key takeaways

• Record Q2 deliveries made Model Y the best-selling vehicle globally, driving a 6.9% revenue beat
• EPS of $0.33 missed estimates by 34%, reflecting margin compression in automotive and energy segments
• FSD reached 55% attach rate on North American deliveries, building recurring subscription revenue
• Robotaxi fleet operates across seven U.S. markets with 380,000 miles of unsupervised operation and zero notable incidents
• Energy storage deployments grew 53% YoY, but gross margins declined due to warranty true-ups and tariff-related cost changes
• The Terafab project signals deepening semiconductor ambitions with partners including Samsung, TSMC, and SpaceX

Management priorities

• Ramping Optimus production with a target of 10 million units per year
• Launching and detailing the Terafab project for AI chip manufacturing
• Expanding the robotaxi fleet into additional U.S. cities
• Scaling Cybercab production after accumulating chassis data
• Increasing solar panel manufacturing capacity and deploying Megapack 3