Tesla reported a Q2 with record vehicle deliveries of about 480,000 and quarterly revenue of roughly $28.2 billion, but profits fell short of expectations as operating costs surged around 47% due to heavy investments in AI, robotics, and other initiatives. Net income slipped about 5% to $1.11 billion, and earnings per share came in around 33 cents, well below consensus estimates in the low-to-mid 50s. The company’s operating margin compressed to about 1.4% from 4.1% a year earlier, as price cuts and regulatory-credit volatility weighed on profitability despite strong sales in regions like Australia. Management reiterated aggressive capital expenditure plans and ongoing development across cars, batteries, robotics, and autonomy, signaling a long-term push into new business lines even as near-term margins suffer. Stock traded lower after the results as investors weighed the tension between rapid growth investments and current profitability.