Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage.
Tesla reported second quarter results after the close on Wednesday 22 July. Revenue rose 26 percent year on year to a record $28.2 billion, ahead of the roughly $26 billion consensus. Profit went the other way: adjusted earnings per share of 33 cents missed the 51 cent LSEG consensus, GAAP net income fell 5 percent to $1.11 billion, and operating income dropped 57 percent to $398 million. Operating margin came in at 1.4 percent, down from 4.1 percent a year ago.
| Metric | Actual | Consensus |
| Revenue | $28.2bn | ~$26.0bn |
| Adjusted EPS | $0.33 | $0.51 |
| Deliveries | 480,126 | ~406,000 |
Deliveries reached 480,126 vehicles, up 25 percent and about 74,000 ahead of analyst forecasts, so volume did the work on the top line. The energy business deployed 13.5 GWh of storage, up 40 percent and the second best quarter on record, though segment gross margin fell to 20.4 percent from 39.5 percent after a roughly $240 million warranty provision for vendor cell issues and the absence of the prior quarter’s tariff benefit.
Spending explains the bottom line. Capital expenditure more than doubled year on year to $5.79 billion as Tesla built out AI compute, robotaxi capacity and Optimus robot production, pushing free cash flow to negative $1.09 billion. The company gave no formal revenue or earnings guidance, in line with usual practice. Elon Musk directed attention to the robotaxi service expansion, the Cybercab production ramp, and plans to convert Fremont assembly lines to build the Optimus humanoid robot, framing the company’s future around autonomy and robotics.
The market gave its own verdict on that framing. The stock slipped about 4 percent in after-hours trade and fell 12.7 percent the following day, removing roughly $140 billion of market value. A record quarter for deliveries and revenue arrived with a 1.4 percent operating margin, and the price reaction suggests investors did the same arithmetic.
