Tesla Inc (TSLA) Q2 2026 Earnings Call Highlights: Record Deliveries and Strategic Investments ...
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Tesla Inc (TSLA) Q2 2026 Earnings Call Highlights: Record Deliveries and Strategic Investments ... GuruFocus News Thu, July 23, 2026 at 1:01 AM EDT 3 min read TSLA SPCX BTC-USD This article first appeared on GuruFocus . Record Q2 Deliveries: Achieved record deliveries globally with sequential growth in the Americas (60%), APAC (27%), and EMEA (12%). Model Y Performance: Set records in key markets including the Netherlands, Australia, and New Zealand. FSD Subscription: 55% of North American deliveries included FSD subscription at delivery. Automotive Gross Margin: Declined from 19.2% to 16.3%, excluding regulatory credits. Energy Storage Deployment: 13.5 GWh deployed, a 53% sequential increase. Energy Gross Margin: Declined from 39.5% to 20.4% due to warranty true-up and non-repeating tariff benefits. Service and Other Margins: Improved from 9.2% to 14.1%, an all-time high. Net Income: Positively impacted by a $1 billion gain on SpaceX holdings, offset by $300 million FX losses and $100 million Bitcoin losses. Free Cash Flow: Negative for the quarter due to more than doubled CapEx. CapEx: Expected to exceed $25 billion for the year, with further increases in the second half of 2026. Debt Facilities: Capacity to borrow up to $30 billion to accelerate investments. Warning! GuruFocus has detected 6 Warning Signs with TSLA. Is TSLA fairly valued? Test your thesis with our free DCF calculator. For the complete transcript of the earnings call, please refer to the full earnings call transcript . Tesla Inc ( NASDAQ:TSLA ) achieved record Q2 deliveries, with Model Y becoming the best-selling car globally. The Full Self-Driving (FSD) feature is a significant demand driver, with high take rates in approved locations. The energy business is growing rapidly, with a 53% sequential increase in energy storage deployments. Tesla Inc ( NASDAQ:TSLA ) is making substantial investments in AI and infrastructure, positioning for future growth. The Robotaxi program has shown exponential growth with an impeccable safety record over 380,000 miles. Automotive gross margins, excluding regulatory credits, declined from 19.2% to 16.3% sequentially. Energy gross margins fell from 39.5% to 20.4% due to warranty true-ups and increased competition. Production growth is limited by supply chain constraints, including batteries and electronic components. Free cash flow was negative for the quarter due to a significant increase in CapEx. Tesla Inc ( NASDAQ:TSLA ) faces challenges in scaling production for new products like Optimus due to the lack of an existing supply chain. Q : Can you provide an update on the Robotaxi program and its scaling efforts? A : Ashok Elluswamy, Tesla's VP of AI, stated that the Robotaxi program has been operating with an impeccable safety record, having driven over 380,000 miles without notable incidents. The program is expanding rapidly, with a focus on scaling to entire states rather than city by city. The technology improvements in the V15 FSD software are expected to enhance safety and capability, supporting exponential growth. Q : How is Tesla addressing supply chain challenges for Optimus production? A : Elon Musk, CEO, mentioned that Tesla has had to insource much of the supply chain for Optimus due to its novelty. However, partners like Samsung and TSMC are making significant investments in AI compute for Optimus and Robotaxi. Tesla is also working with suppliers like Micron for memory allocation, ensuring support for future projects. Q : What are Tesla's expectations regarding regulatory requirements for Robotaxi deployment? A : Lars Moravy, VP of Vehicle Engineering, emphasized the importance of performance in gaining regulatory approval. Tesla is working closely with regulators and believes that regulations should focus on setting goals rather than prescribing solutions. The company is expanding city by city to meet specific regulatory requirements. Q : Is there potential for Tesla and SpaceX to combine, given their collaborations? A : Elon Musk acknowledged the increasing overlap between Tesla and SpaceX, especially with projects like TerraFab. However, any discussions about combining companies would require appropriate processes and cannot be addressed in an earnings call. Q : How is Tesla managing CapEx spending during its current investment cycle? A : Elon Musk stated that Tesla aims to spend on CapEx as quickly as possible without being wasteful, balancing capital efficiency with time. The focus is on productive assets, such as scaling factories and solar manufacturing, to support rapid industrial growth.
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