Tesla Q2 Earnings: Revenue Rises, Profit Declines, Musk Thanks Memory Supplier
Tesla reported its second-quarter financial results, with revenue increasing 26% year-over-year. CEO Elon Musk thanked memory chip supplier Micron and deflected merger rumors.
Electric vehicle manufacturer Tesla released its second-quarter financial results, reporting a 26% increase in revenue to $28.236 billion compared to the previous year. However, net income attributable to common shareholders declined by 5% to $1.114 billion.
During the earnings call, CEO Elon Musk specifically thanked Micron Technology for securing memory supply for Tesla, stating the allocation was "substantial" and offered at "reasonable price terms," which is notable given current market tightness for memory chips.
The company also announced that its Cybercab robotaxi has begun production at the Texas Gigafactory. Musk described the scaling of production for the Optimus robot as a "Herculean task" due to the novelty of each component. Tesla plans to upgrade its camera-equipped vehicles with next-generation AI hardware.
CFO Vaibhav Taneja indicated that Tesla is in a "large investment cycle." Free cash flow was negative this quarter due to capital expenditures more than doubling, and is projected to remain negative until 2029. Full-year capital expenditures are expected to exceed $25 billion.
Musk declined to comment on rumors of a potential merger between Tesla and SpaceX, stating the earnings call was not the appropriate venue. Tesla previously invested $10 billion in SpaceX, yielding about $1 billion in unrealized gains.