Tesla reports profit decline in second quarter
Tesla announced a net profit of $1.11 billion for the second fiscal quarter, a year-over-year decrease of 5.21%. Revenue increased by 26%, but costs and strategic investments impacted the bottom line.
Tesla reported its financial results for the second fiscal quarter of 2026, with net profit attributable to shareholders reaching $1.11 billion. This figure represents a 5.21% decrease compared to the same period in the previous year.
The company's total revenue saw a significant increase, growing by 26% year-over-year to $2.82 billion. Gross profit also rose by 22.72% to $476 million. However, the gross margin slightly contracted by 0.4 percentage points to 16.8%.
Despite the revenue growth, the net profit was negatively affected. Operating cash flow saw a substantial increase of 84.65% to $469 million. Conversely, free cash flow turned negative, amounting to -$110 million, compared to a positive figure in the prior year's quarter.
Looking ahead, Tesla announced the start of production for the Cybercab at its Texas Gigafactory. The company plans to maximize capacity utilization in its existing facilities and anticipates future profit growth from AI, software, and fleet-related businesses. The Megapack 3 and the first production line for Optimus robots are scheduled to commence production within 2026.