- Tesla reported second-quarter revenue of $28.24 billion, up 26% year over year, with quarterly deliveries of 480,126 vehicles and automotive revenue of $20.52 billion.
- GAAP operating income fell 57% year over year to $398 million, reducing Tesla’s operating margin to 1.4%, while adjusted EPS of $0.33 trailed the cited consensus range of $0.51 to $0.53.
- Capital expenditures nearly doubled to $5.80 billion and Tesla generated negative free cash flow of $1.10 billion as spending increased on AI compute, custom semiconductors, battery materials, Cybercab capacity, and Optimus production.
- The source attributes margin pressure to lower-priced Model 3 and Model Y variants, the discontinuation of higher-margin Model S and Model X vehicles, declining regulatory-credit revenue, and increased fixed overhead.
Quotes
“GAAP operating income fell 57% year-over-year to $398 million, implying an operating margin of 1.4% versus slightly over 4% posted both in last quarter and the same quarter last year.”
“Operating expenses increased by 47% year-over-year to $4.35 billion, while capital expenditures nearly doubled to $5.80 billion, resulting in a $1.10 billion negative free cash flow balance.”