Tesla Motors (TSLA) released its second-quarter 2026 financial report on the 23rd. As quarterly earnings fell short of market expectations and the company confirmed that full-year capital expenditure would exceed $25 billion, investor concerns over high computing investment and cash flow pressure drove Tesla Motors (TSLA) shares down more than 10% in early trading on the 23rd.
According to the report, Tesla Motors (TSLA) posted second-quarter revenue of $28.24 billion, a 26% year-over-year increase that surpassed Wall Street's average estimate of $26.32 billion. This growth was primarily fueled by a rebound in global new vehicle deliveries, which surged 25% year-over-year to 480,100 units in the quarter. Additionally, the company's energy storage business deployed 13.5 gigawatt-hours, up more than 50% sequentially. However, the company's adjusted earnings per share for the quarter came in at just $0.33, well below the expected $0.50. Adjusted EBITDA was $3.2 billion, also missing the $4 billion forecast. Moreover, the company's free cash flow remained in a net outflow position, with a loss of $1.09 billion.
In response to the disappointing profit metrics, Tesla Motors (TSLA) management confirmed during the earnings call that 2026 will be a "peak year" for capital expenditure. Chief Financial Officer Vaibhav Taneja explicitly stated that the company's full-year capital spending would exceed $25 billion. These funds are primarily allocated to mass production of the humanoid robot Optimus, artificial intelligence data center construction, and capacity expansion for Robotaxi services.
Regarding the highly anticipated new technology initiatives, Chief Executive Officer Elon Musk noted that humanoid robot production is proceeding according to plan, with initial units dedicated to internal data collection and feature expansion testing. Meanwhile, the autonomous taxi business has commenced unsupervised testing in seven major metropolitan areas across the US, with weekly driving mileage increasing by over 10%. As of the end of the quarter, the number of subscribers to Tesla Motors' (TSLA) Full Self-Driving (FSD) service reached 1.48 million, up 56% year-over-year.
Industry analysts pointed out that while Tesla Motors (TSLA) has seen notable sales growth in overseas markets such as Europe and a recovery in automotive deliveries, the expiration of US domestic electric vehicle tax credit subsidies has directly constrained demand. Against a backdrop of shrinking profitability in the automotive business, the company's aggressive spending on physical AI and computing infrastructure has significantly elevated operating costs, putting continued pressure on short-term cash flow and profit margins.
Comments