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Financial
Financial
Tesla reports record revenue in Q2 2026 but large profit decline
Tesla released its Q2 2026 financial results showing record revenue of $28.24 billion, a 26% year-over-year increase and above Wall Street expectations. However, non-GAAP earnings per share were only $0.33, down 18% from the previous year and well below the $0.53 consensus. Operating income fell 57% to $398 million, with an operating margin of 1.4%, impacted by a 47% rise in operating expenses driven by investments in AI, Optimus, robotaxi, and stock-based compensation. Regulatory credits collapsed 67%, contributing to the profit decline. Energy deployment grew 40% to 13.5 GWh.
- Record revenue of $28.24 billion, +26% year-over-year
- Non-GAAP EPS of $0.33, -18% year-over-year
- Operating income fell 57% to $398 million
🔎 Why it matters: The Q2 2026 report shows record revenue but a sharp decline in operating income and regulatory credits, impacting profitability.
📈 Upside: Gross margin held steady at 16.8% despite record deliveries.
📉 Risk: Rising operating expenses and falling regulatory credits pressure future profitability.
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