Tesla Inc. reported second-quarter revenue of $28.24 billion, beating the Street consensus estimate of $25.71 billion. The electric vehicle manufacturer also achieved $100 billion in trailing twelve-month revenue for the first time in its history. Despite the revenue beat, Tesla reported second-quarter earnings of 33 cents per share, missing the Street consensus estimate of 50 cents per share. The company delivered 480,126 vehicles in the second quarter, a 25% year-over-year increase, exceeding the Street estimate of 406,000. Model Y emerged as the top-selling vehicle globally during the period.

Financial Performance

The revenue figure represents a significant increase over the prior-year period. Tesla ended the quarter with digital assets worth $674 million, primarily consisting of Bitcoin holdings, a decrease from $786 million in the first quarter. Active Full Self-Driving (FSD) subscriptions reached 1.48 million in the second quarter, up 56% year-over-year and an increase from 1.28 million in the first quarter. Tesla CEO Elon Musk stated that customers in the U.S. are increasingly purchasing the FSD package, with some prioritizing it over the vehicle itself. Musk remarked that for many people, they are "actually buying Tesla Full Self-Driving with a car attached, as opposed to a car with FSD."

Production and Future Outlook

Tesla is advancing its future technologies, with first-generation production lines for the Optimus Bot currently being installed in anticipation of production in 2026. The company stated that production will happen "soon." The Cybercab is now listed as in production, with the vehicle having begun production during the quarter. This marks an improvement from the previous quarter's expectation of volume production "this year." The Tesla Semi is listed as "commissioning," and the company remains on track for volume production this year.

Key Metrics

Management emphasized that Tesla is in its largest and most exciting period of investment, focusing on maximum capacity utilization at its factories. Deliveries and deployments will depend on demand, and the company expressed that it has "never been more optimistic about the future."

Tesla Inc. is increasing its capital and operating expenditure to achieve the most rapid industrial expansion in the U.S. since World War II, as revealed by CEO Elon Musk and CFO Vaibhav Taneja. This strategic shift prioritizes speed over maximizing capital efficiency to accelerate projects and deliver long-term value, with 2026 marked as a "massive CapEx year" for the company.

Record Capital Expenditure

During the Q2 earnings call, Taneja expressed the company's readiness to spend aggressively on vehicles, autonomy, and robotics. Tesla reported a record capital expenditure (CapEx) of $5.79 billion for the second quarter, representing a 142% year-over-year increase from the prior year. Concurrently, total GAAP operating expenses climbed 47% year-over-year to $4.35 billion in the second quarter of 2026.

The surge in operating expenses was primarily driven by significant R&D activities, including pre-production ramp costs for new products like the Tesla Semi, Optimus, Cybercab, and other AI initiatives. Taneja noted a positive impact on net income from a $1 billion mark-to-market gain on their Space Exploration Technologies Corp holdings.

Q2 Performance and Expansion

Tesla's aggressive capital spending follows a strong Q2 performance, where the company reported revenue of $28.24 billion, beating the Street consensus estimate of $25.71 billion. The company returned to growth in the second quarter, delivering 480,126 vehicles after producing 451,758. Deliveries rebounded sharply from 358,023 vehicles in the first quarter.

To support this growth, Tesla is ramping up production at its Gruenheide factory in Germany, targeting up to 7,500 vehicles per week. The plant supplies Germany and 30 other European markets, aiming to strengthen local manufacturing presence against competitors like Nio and BYD.

Financial Metrics Overview

Musk also thanked Micron Technology Inc. for allocating a significant share of its memory supply to Tesla, securing the supply on reasonable terms for the coming years despite intense industry demand.