Tesla posts record Q2 revenue, earnings miss, spending up

Tesla reported record quarterly revenue but a significant earnings miss after the market closed on Wednesday, July 22, 2026, highlighting the company's shifting financial dynamics amid heavy investment spending. The electric vehicle and energy company posted second-quarter revenue of $28.24 billion, a 26% year-over-year increase that surpassed Wall Street expectations of roughly $26.4 billion. However, its non-GAAP earnings per share of $0.33 fell well short of the $0.53 analysts had anticipated and represented an 18% decline from the same period a year ago.

The earnings results underscore a growing divergence between Tesla's top-line growth and its profitability. The record revenue was driven by all-time high vehicle deliveries of 480,126 units, a 50% jump in services revenue, and continued growth in energy storage, which saw deployments of 13.5 GWh, a more than 40% increase from a year ago. This marks Tesla's first substantial revenue growth in over a year and pushed its trailing-twelve-month revenue above $100 billion for the first time.

Despite the strong revenue performance, profit margins eroded significantly below the gross margin line. While total gross margin of 16.8%...