The American electric vehicle manufacturer Tesla Inc. saw its revenue rise by 26 per cent in the second quarter of 2026, although its net profit fell by 5 per cent.
According to the company’s press release, revenue for the past quarter stood at $28.24 billion, compared with $22.5 billion for the same period the previous year. Analysts surveyed by LSEG had forecast an average figure of $25.71 billion.
Tesla’s net profit fell to $1.11 billion from $1.17 billion a year earlier. Earnings per share fell to $0.32 from $0.33. Adjusted earnings per share stood at $0.33, which was significantly below the consensus forecast of $0.51 per share.
Revenue in the automotive segment rose by 23 per cent to $20.52 billion, in the power generation and storage segment by 13 per cent to $3.14 billion, and in the services sector by 50 per cent to $4.58 billion.
The company’s electric vehicle deliveries in the last quarter rose by 25 per cent compared with the same period last year, to 480,126 thousand. Production increased by 10 per cent, to 451,758 thousand vehicles.
Tesla’s operating expenses rose by 47 per cent to $4.35 billion, against the backdrop of the company’s significant investments in AI, as well as other research and development. The operating profit margin fell to 1.4 per cent from 4.1 per cent a year earlier.
Chief Financial Officer Vaibhav Taneda warned that operating expenses would continue to rise in 2026 and beyond. Rising raw material prices and changes in interest rates are affecting the company’s costs, he noted.
Tesla’s capital expenditure in the second quarter rose 2.4-fold to $5.8 billion, resulting in the company recording a negative free cash flow of -$1.1 billion for the first time in two years. In April, the company raised its annual capital expenditure target to $25 billion.
Tesla shares fell by 4.1 per cent in after-hours trading on Wednesday. Since the start of this year, their value has fallen by 16.8 per cent.