Tesla Q2 revenue beats but EPS misses; stock falls 6%+ premarket

Tesla Stock Slides After Mixed Q2 Earnings, With $25 Billion in Capex Spending Lined Up

By Pras Subramanian · Senior Reporter Updated Thu, July 23, 2026 at 4:48 AM PDT · 4 min read

TSLA -1.30%

Tesla (TSLA) shares fell early Thursday after the electric vehicle pioneer reported mixed second-quarter results that missed Wall Street expectations, though its cash burn rate was lower than anticipated. Investors may be looking for more details on the company’s physical AI build-outs.

Q2 Earnings Highlights

Tesla reported Q2 revenue of $28.24 billion after the closing bell on Wednesday, exceeding the $26.32 billion expected per Bloomberg consensus and representing a 26% increase year-over-year. However, adjusted earnings per share came in at $0.33, below the $0.50 estimate. Adjusted EBITDA was $3.2 billion, versus the $4 billion expected.

Tesla stock slid more than 6% in premarket trading on Thursday as investors weighed the earnings miss against the revenue beat.

(TSLA) Stock Performance

374.01 -4.92 (-1.30%) At close: July 22 at 4:00:00 PM EDT

Optimus Robot and Robotaxi Updates

Tesla said production of the Optimus humanoid robot remains on track for later this year.

"The initial Optimus builds will be used in our Optimus Academy for training data collection and further functionality development."

The company did not indicate when the latest version of Optimus would be revealed.

Tesla also confirmed that its robotaxi rollout has expanded to seven major metro areas:

• Expanded unsupervised operation area in Austin
• Launched unsupervised rides in Miami, Orlando, and Tampa in July
• Continued preparation for expansion to additional U.S. metros, including testing, permitting, and first responder training

CEO Elon Musk said on the earnings call:

"We'll continue to scale very rapidly with Robotaxi — more than 10% growth in miles driven per week."

He acknowledged that safety considerations will limit the pace of growth.

A Tesla Optimus robot is displayed next to a logo at the company's booth at the 8th China International Import Expo in Shanghai, China, on Nov. 6, 2025. (Reuters/Maxim Shemetov)

Full Self-Driving and Free Cash Flow

Tesla reported that full self-driving (FSD) active subscriptions climbed to 1.48 million, up 56% from a year ago.

The company’s free cash flow burn continued in the quarter but was less than expected, coming in at -$1.09 billion versus the -$3.64 billion estimate.

Musk noted that 2026 would be a "massive capex year," and CFO Vaibhav Taneja confirmed that Tesla’s capital expenditures would be "more than $25 billion" this year. Analysts had expected full-year capex to reach $25.16 billion.

Tesla is spending aggressively across several fronts:

• Optimus humanoid robot production
• AI data center build-out
• Cybercab production ramp-up

These investments are the bets that justify Tesla’s rich valuation, but they are also consuming cash as the auto business improves.

Tesla and SpaceX Collaboration

Tesla and Musk’s other company, SpaceX (SPCX), collaborate on certain projects, including Terafab and AI initiatives, leading to speculation about a potential merger. When asked, Musk said:

"There is overlap across the two companies, but we can't talk about combining companies on an earnings call. It's got to be done with the appropriate process."

Delivery and Energy Storage Performance

The revenue jump follows a blowout delivery quarter. Tesla reported Q2 deliveries of 480,126, up 25% year-over-year and easily topping Bloomberg consensus estimates of 397,466.

Energy storage deployments came in at 13.5 GWh, more than 50% above the first quarter’s 8.8 GWh.

Several catalysts powered the spike in sales.

A driverless Tesla robotaxi, a ride-booking service, moves through traffic, Sunday, June 22, 2025, in Austin, Texas. (AP Photo/Eric Gay)