Tesla Q2 Revenue Up, Profits Down as Costs Rise

Tesla posted a Q2 2026 revenue of $28.2 billion, up 26% year over year and driven by broad strength including Australia’s record Model Y sales, but profitability deteriorated as adjusted EPS came in at $0.33 vs $0.51 and GAAP operating income plunged 57% to $398 million with a 1.4% margin. The quarter reflected heavy expenditure on AI, robotics, and capital outlays, resulting in negative free cash flow despite a revenue record across automotive, energy, and services.