TSLA 10-Q filed 2026-07-23 | Key takeaways

Q2 2026 total revenue grew 26% YoY to $28,236 million, driven by automotive sales up 27% to $20,006 million and services and other revenue up 50% to $4,581 million.

Profitability slipped despite the top-line gain: net income attributable to common stockholders fell 5% YoY to $1,114 million, diluted EPS declined 3% to $0.32, and total gross margin contracted 40 basis points to 16.8%.

Tesla raised its 2026 capital expenditure outlook to in excess of $25 billion from the $9+ billion guided for 2025, with management citing AI initiatives, compute infrastructure and data centers, manufacturing expansion, and growth in AI-enabled fleet assets.

Tesla acquired an AI hardware company in Q2 2026 in an asset acquisition for $1.95 billion in Tesla common stock and equity awards, with $1.73 billion subject to service/performance milestones and $222 million allocated to a patent intangible.

Tesla invested $2.00 billion in SpaceX common stock in March 2026 (less than 1% ownership), elected the fair value option, and recorded a $1.00 billion net gain on the investment in Q2 2026 (including a $238 million discount for lack of marketability).

Year-to-date operating cash flow nearly doubled to $8,634 million (+84% YoY), while purchases of property and equipment rose 113% to $8,282 million; cash and cash equivalents and short-term investments stood at $43.52 billion as of June 30, 2026.

Tesla released the valuation allowance on California deferred tax assets (other than R&D credits) following enactment of California SB 122, recognizing a $274 million income tax benefit in Q2 2026; effective tax rate fell to 15% (Q2) and 22% (YTD).

New Note 3 discloses that in Q2 2026 Tesla acquired an AI hardware company in an asset acquisition for $1.95 billion in Tesla common stock and equity awards, with $1.73 billion subject to service/performance milestones and $222 million allocated to a patent and developed technology intangible asset.

Tesla invested $2.00 billion in SpaceX common stock in March 2026 (less than 1% ownership), elected the fair value option under ASC 825, and recorded a $1.00 billion net gain on the investment in Q2 2026, presented in Other non-current assets with $3.007 billion fair value at June 30, 2026. Tesla also recognized $318 million in Q2 2026 revenue from SpaceX for Megapack purchases.

New disclosure details 423.7 million performance-based restricted stock shares in 12 tranches tied to market cap milestones ($2.0T to $8.5T) and operational milestones (20M vehicles delivered, 10M FSD subscriptions, 1M bots delivered, 1M Robotaxis in commercial operation, $50B-$400B Adjusted EBITDA). Tesla determined the 20M vehicle delivery milestone is probable and recorded $267 million in Q2 2026 stock-based compensation; $9.82 billion unrecognized stock-based compensation will be recognized over 9.2 years.

Delaware Supreme Court reversed the Court of Chancery's rescission order reinstating the 2018 CEO Performance Award; CEO exercised approximately 304.0 million stock options net settled for 17.5 million shares; the 2025 CEO Interim Award of 96 million shares was forfeited in April 2026 in line with the 'no double dip' principle.

Tesla now expects 2026 capital expenditures to be in excess of $25 billion (vs. $9+ billion guidance disclosed in Q2 2025 10-Q), driven by AI initiatives, compute infrastructure and data centers, manufacturing expansion, and growth in AI-enabled fleet assets.

In February 2026 the U.S. Supreme Court invalidated certain tariffs imposed under IEEPA; Tesla may be eligible for refunds but has not recognized any receivable until amounts are realized or realizable, and may owe refunds to certain energy storage customers.