Tesla Q2 revenue up as deliveries rise, cash burn widens

Tesla reported record quarterly revenue of $28.2 billion for the second quarter of 2026, driven by a significant rebound in vehicle deliveries, even as its aggressive spending on artificial intelligence and robotics led to a cash burn that has raised investor concerns. The company delivered 480,126 vehicles in the quarter, a 25 percent increase from the same period in 2025, exceeding Wall Street expectations.

Despite the revenue growth, Tesla's net income saw a modest increase of 5 percent year-over-year to $1.11 billion, with some measures showing a decline. The company reported negative free cash flow of $1.1 billion, its first quarterly cash burn since early 2024, as capital expenditures more than doubled to $5.8 billion. This spending is part of a planned capital expenditure exceeding $25 billion for the full year, nearly triple the amount spent in 2025.

CEO Elon Musk described this as a "massive capex year," expressing confidence that investments in AI, robotics, and new manufacturing facilities would yield significant returns. Key initiatives absorbing this capital include ramping up production of the Cybercab robotaxi in Texas, converting the former Model S and X assembly...