Slides
Page 1
Q2 2026 Update 1
Page 2
Highlights 03 Financial Summary 04 Operational Summary 05 Manufacturing & Hardware 06 Supporting Infrastructure 07 AI & Software 08 Services 09 Outlook 10 Photos & Charts 11 Key Metrics 23 Financial Statements 26 Additional Information 32 2
Page 3
S U M M A R YH I G H L I G H T S (1) Refer to the Reconciliation of GAAP to Non–GAAP Financial Information slide (2) Free cash flow = operating cash flow less capex; (3) Includes cash, cash equivalents and short -term investments; (4)Active driver supervision required; does not make the vehicle autonomous; (5) Bay Area operations use FSD (Supervised) pursuant to CA TCP permit # TCP0046782 – A; Note: all information herein refers to the current quarter unless otherwise noted. Profitability $0.4B GAAP operating income $1.1B GAAP net income $1.2B non-GAAP net income 1 Q2 was a strong quarter for our core vehicle, energy and services businesses as well as our manufacturing, infrastructure and AI initiatives. Our focus remains on strengthening these core businesses and making the necessary investments that will deliver Amazing Abundance. Tesla generated over $100B in revenue on a trailing twelve -month basis for the first time. We achieved record second -quarter vehicle deliveries, with continued growth in new markets and strength in established markets. Our Energy Storage business returned to growth, achieving its second-best quarterly deployment number and record deployments on a trailing twelve -month basis. The Services and Other business achieved record profitability and margin in the quarter. Cybercab began production at Gigafactory Texas, and Tesla Semi remains on track for production this year at our new factory in Nevada. Progress also continued on battery pack capacity expansion – the main limiting factor to near -term vehicle production volume increase. Megafactory Texas is nearing completion, with start of production planned for this year. Additionally, site selection, preparation, construction and equipment procurement progressed in the quarter for solar and semiconductor manufacturing. FSD (Supervised) 4 penetration continued to grow in the quarter with more customers opting for subscription at the time of vehicle purchase. Robotaxi rollout continued in the U.S. and is now live in seven major metros 5. Construction at our Fremont Factory for Optimus began after we decommissioned the Model S & X lines, with anticipated production later this year. Tesla is in its largest and most exciting period of investment. From here, there remains much hard work as we aim to revolutionize transportation, energy and productivity through our leading real -world AI. Scaling will be non -linear, and we are focused on long -term value creation. We’ve never been more optimistic about the future. Cash Operating cash flow of $4.7B Free cash flow 2 of negative $1.1B $1.2B decrease in our cash and investments 3 Operations Record Q2 vehicle deliveries Launched Robotaxi in three cities in Florida in July Began production of Cybercab 3
Page 4
F I N A N C I A L S U M M A R Y (Unaudited) ($ in millions, except percentages and per share data) Q2-2025 Q3-2025 Q4-2025 Q1-2026 Q2-2026 YoY Total automotive revenues 16,661 21,205 17,693 16,234 20,516 23% Energy generation and storage revenue 2,789 3,415 3,837 2,408 3,139 13% Services and other revenue 3,046 3,475 3,371 3,745 4,581 50% Total revenues 22,496 28,095 24,901 22,387 28,236 26% Total gross profit 3,878 5,054 5,009 4,720 4,751 23% Total GAAP gross margin 17.2% 18.0% 20.1% 21.1% 16.8% -41 bp Operating expenses 2,955 3,430 3,600 3,779 4,353 47% Income from operations 923 1,624 1,409 941 398 -57% Operating margin 4.1% 5.8% 5.7% 4.2% 1.4% -269 bp Adjusted EBITDA 3,401 4,227 4,154 3,668 3,273 -4% Adjusted EBITDA margin 15.1% 15.0% 16.7% 16.4% 11.6% -353 bp Net income attributable to common stockholders (GAAP) 1,172 1,373 840 477 1,114 -5% Net income attributable to common stockholders (non-GAAP) 1,393 1,770 1,761 1,453 1,153 -17% EPS attributable to common stockholders, diluted (GAAP) 0.33 0.39 0.24 0.13 0.32 -3% EPS attributable to common stockholders, diluted (non-GAAP) 0.40 0.50 0.50 0.41 0.33 -18% Net cash provided by operating activities 2,540 6,238 3,813 3,937 4,697 85% Capital expenditures (2,394) (2,248) (2,393) (2,493) (5,789) 142% Free cash flow 146 3,990 1,420 1,444 (1,092) -848% Cash, cash equivalents and short-term investments 36,782 41,647 44,059 44,743 43,524 18% 4
Page 5
Q2-2025 Q3-2025 Q4-2025 Q1-2026 Q2-2026 YoY Model 3/Y production 396,835 435,826 422,652 394,611 442,936 12% Other models production 13,409 11,624 11,706 13,775 8,822 -34% Total production 410,244 447,450 434,358 408,386 451,758 10% Model 3/Y deliveries 373,728 481,166 406,585 341,893 467,762 25% Other models deliveries 10,394 15,933 11,642 16,130 12,364 19% Total deliveries 384,122 497,099 418,227 358,023 480,126 25% of which subject to operating lease accounting 6,670 10,230 10,996 3,430 7,580 14% Cumulative deliveries(1) (all-time; mil) 8.0 8.5 8.9 9.2 9.7 21% Active FSD Subscriptions(2) (mil) 0.95 1.04 1.10 1.28 1.48 56% Total end of quarter operating lease (new vehicle) count(3) 172,882 167,163 163,075 151,991 141,876 -18% Global vehicle inventory (days of supply)(4) 24 10 15 27 15 -38% Storage deployed (GWh) 9.6 12.5 14.2 8.8 13.5 41% Supercharger stations 7,377 7,753 8,182 8,463 8,704 18% Supercharger connectors 70,228 73,817 77,682 79,918 82,357 17% O P E R A T I O N A L S U M M A R Y (Unaudited) 5 (1) In accordance with our 2025 CEO Performance Award, metric includes all new Tesla vehicles delivered to customers plus any unsupervised Robotaxis placed into commercial operation. For further detail see our 2025 Proxy Statement. (2) In accordance with our 2025 CEO Performance Award, metric includes both upfront payment and monthly subscriptions and excludes free trials. For further detail see our 2025 Proxy Statement. (3) Beginning in Q4’25, end of quarter operating lease count pertains only to new vehicles. Q3’25 has been adjusted to exclude used vehicles. (4) Days of supply is calculated by dividing new vehicle ending inventory by the relevant quarter’s deliveries and using 75 trading days (aligned with Automotive News definition).
Page 6
M A N U F A C T U R I N G & H A R D W A R E Installed Annual Manufacturing Capacity Region Product Capacity Status Automotive California Model 3 / Model Y >550,000 Production Shanghai Model 3 / Model Y >950,000 Production Berlin Model Y >375,000 Production Texas Model Y >250,000 Production Cybertruck >125,000 Production Cybercab >125,000 Production Nevada Tesla Semi - Commissioning TBD Roadster - Design development Energy Generation and Storage California Megapack 40 GWh Production Nevada Powerwall >6 GWh Production Shanghai Megapack 20 GWh Production Texas Megapack - Commissioning Robotics California Optimus - Construction Texas Optimus - Construction Installed capacity ≠ current production rate and there may be limitations discovered as production rates approach capacity. Production rates depend on a variety of factors, including equipment uptime, component supply, downtime related to factory upgrades, regulatory considerations and other factors. Construction includes factory and infrastructure buildout as well as tool installation. Automotive Our overall Q2 record deliveries were supported by record deliveries in several markets, including South Korea, Australia, Colombia, Japan, Taiwan, Thailand, Portugal, the Philippines, Chile, Slovenia and Lithuania. We launched the Model YL in the U.S. market in July. Consistent with launches in other markets, we have seen a positive response from customers. Energy generation and storage We achieved record energy storage deployments in EMEA, supported by record deployments from Megafactory Shanghai, which continues to ramp production. We are also on track to begin production of Megapack 3 and Megablock this year at our new Megafactory Texas. Powerwall 3P (three -phase) is now available in Germany and is designed to meet the power needs of homes with three -phase power with a single unit. It includes a native three -phase inverter bringing the cost savings and energy security of our residential energy products to more customers. We are focused on bringing Powerwall 3P to other three -phase markets as quickly as possible. Robotics We have decommissioned the manufacturing lines for Models S & X at our Fremont Factory and are installing the first -generation lines for Optimus, where we expect to start production soon. The initial Optimus builds will be used in our Optimus Academy for training data collection and further functionality development. Additionally, we continued site development at Gigafactory Texas with building construction now in full swing. 6
Page 7
S U P P O R T I N G I N F R A S T R U C T U R E Installed Annual Capacity Region Asset Capacity Status AI Training Compute Texas Cortex 1 >90 MW Production Cortex 2 >115 MW Production Battery Cell Manufacturing Nevada LFP 7 GWh Early Ramp Texas 4680 >40 GWh Production Cathode Materials 10 GWh Early Ramp Lithium Refining 30 GWh Early Ramp Berlin 4680 - Construction Installed capacity ≠ current production rate and there may be limitations discovered as production rates approach capacity. Production rates depend on a variety of factors, including equipment uptime, component supply, downtime related to factory upgrades, regulatory considerations and other factors. Early ramp capacity includes expected capacity. Construction includes factory and infrastructure buildout as well as tool installation. AI Training Compute We have more than doubled our onsite compute in Texas (in terms of MW of compute) during the first half of 2026. Cortex 2 supports the development of both vehicle and humanoid robot autonomy software and will ramp further over the rest of the year to ensure we have sufficient compute resources. Battery We continue to work on initiatives to increase battery pack capacity as it remains the limiting factor on ramping our vehicle production globally. Our teams made further progress on the ramp of new battery and material factories, including vehicle pack capacity in Berlin, cathode material production and lithium refining in Texas and LFP cells in Nevada for our energy storage products. We are also increasing production of 4680 cells to support production ramps of both Cybercab and Tesla Semi and increased production of Model Y. Other Supporting Infrastructure We added over 2,400 net new Supercharging stalls, growing the network by 17% year -over-year. We continue to innovate our Supercharger design and production process, helping us scale the network more cost-effectively. We are further reducing Supercharger wait times through improved Trip Planner, forecasted stall availability and dynamic waitlisting integrated into the Tesla app. 7 Tesla AI Training Capacity Ramp (MW of Compute) 0 100 200 300 400 Existing Capacity Future Planned Capacity
Page 8
Customer View of FSD (Supervised)1 Usage Stats A I & S O F T W A R E Cumulative Miles Driven with FSD (Supervised)1 (billions) AI Software We began delivering FSD v14 lite to customers in the U.S. and South Korea (the latter in July) with AI3 hardware. This software build distills the driving behavior from AI4’s v14 series into both the camera and compute configuration of AI3 and includes destination options (parking in a lot, on the street, in a driveway or at the curbside) and speed profiles. It also addresses challenging driving scenarios with improved proactive and reactive responsiveness including navigation handling, merges and forks, pedestrian interactions, traffic lights and vehicle cut -in. AI Inference Compute We continue to make progress on construction and equipment procurement for our semiconductor fab in Austin. While still in its early stages, this project is critical to building our own chipmaking capabilities to ensure reliable long -term supply of essential logic and memory chips for our products. Automotive and Other Software In July, we began rolling out our Summer Release, with additional functionality aimed at enhancing the customer experience and further promoting our autonomous capabilities. Customers can now view and share Self -Driving Stats, making FSD (Supervised) 1 more social and interactive. The Summer Release also includes additional Grok functionality such as making phone calls, searching and playing music and adjusting climate controls. Automatic Navigation expands beyond home and work to support any destination based on personal habits and schedule, including school drop -offs on the way to work. 8 (1) Active driver supervision required; does not make the vehicle autonomous 0.0 2.0 4.0 6.0 8.0 10.0 12.0 FSD Miles on V12 and Beyond FSD Miles on V11 and Before
Page 9
S E R V I C E S Announced Robotaxi Coverage Cumulative Paid Robotaxi Miles 9 State Metro Status California SF Bay Area Safety Driver 2 Texas Austin Ramping Unsupervised Dallas Ramping Unsupervised Houston Ramping Unsupervised Arizona Phoenix Preparations Underway Florida Miami Ramping Unsupervised Orlando Ramping Unsupervised Tampa Ramping Unsupervised Nevada Las Vegas Preparations Underway (1) Active driver supervision required; does not make the vehicle autonomous. (2) Pursuant to CA TCP permit # TCP0046782 - A Robotaxi We started production of Cybercab, our purpose -built autonomous EV designed to be the workhorse of our Robotaxi fleet. Engineering test drives of production Cybercabs on public roads also began during the quarter, and we began offering employee rides in Cybercabs on our Gigafactory Texas campus in July, both important precursors to Cybercab deployment in our Robotaxi fleets. We expanded the unsupervised operation area in Austin and launched unsupervised rides in Miami, Orlando and Tampa in July. Preparation for expansion of our Robotaxi service to additional U.S. metros continued, including testing, permitting and first responder training. FSD (Supervised) 1 FSD adoption grew in the quarter, including record net new subscriptions. We also achieved record FSD attach rates in North America, with over 55% of new deliveries including FSD subscriptions. Building on the approval to deploy FSD in the Netherlands, we received additional approvals in Lithuania, Estonia, Denmark and Belgium, with customers in these countries driving over 50 million kilometers (31 million miles) on FSD as of July. We are seeing elevated interest in our vehicles in markets with FSD approval. Automotive Services Services and Other gross profit grew $302M sequentially to a record $648M, achieving a 14% gross margin, with growth driven by all major segments. As our vehicle fleet grows and we further improve business efficiency, we expect continued profit growth. 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 Cumulative Paid Robotaxi Miles
Page 10
O U T L O O K Volume We are focused on maximum capacity utilization at our factories. Deliveries and deployments will be impacted by aggregate dem and for our products, supply chain readiness and allocation decisions between sale to customers or use for our owned and operated fle et. Cash We will manage the business such that we ensure a strong balance sheet, maintaining sufficient liquidity to fund our product roadmap, long-term capacity expansion plans – including further vertical integration – and other expenses. Profit While we continue to execute on innovations to reduce the cost of manufacturing and operations, over time, we expect our hard ware- related profits to be accompanied by an acceleration of AI, software and fleet -based profits. Product We continue to evolve and augment our product lineup with a focus on cost, scale and future monetization opportunities via se rvices powered by our AI software. We remain focused on growing our sales volumes through a differentiated and efficiently managed p roduct portfolio, which includes leveraging and optimizing our existing production capacity before building new factories and produc tion lines. Tesla Semi and Megapack 3 remain on schedule for production starting in 2026. First-generation production lines for Optimus are being installed in anticipation of production in 2026. Capacity build out and ramp related to our multi -year infrastructure initiatives, including AI compute, solar, battery material and semiconductor manufacturing are underway. 10
Page 11
P H O T O S & C H A R T S
Page 12
T H E T E S L A E C O S Y S T E M – B U I L D I N G A W O R L D O F A M A Z I N G A B U N D A N C E 12
Page 13
M O D E L Y L – N O W A V A I L A B L E I N T H E U . S . 13
Page 14
M O D E L Y L – F I R S T B U I L D S A T G I G A F A C T O R Y T E X A S 14
Page 15
C Y B E R C A B – A U T O N O M O U S R I D E S F O R E M P L O Y E E S A T G I G A F A C T O R Y T E X A S 15
Page 16
R O B O T A X I – R A M P I N G U N S U P E R V I S E D I N M I A M I 16
Page 17
17 C Y B E R C A B – P R O D U C T I O N A T G I G A F A C T O R Y T E X A S
Page 18
O P T I M U S – F I R S T G E N E R A T I O N P R O D U C T I O N L I N E I N F R E M O N T 18
Page 19
19 O P T I M U S – F I R S T G E N E R A T I O N P R O D U C T I O N L I N E I N F R E M O N T
Page 20
T E S L A S E M I F A C T O R Y – B U I L D I N G E X T E R I O R 20
Page 21
T E S L A S E M I F A C T O R Y – E N D O F L I N E 21
Page 22
T E S L A L I T H I U M D A Y – I N - H O U S E B A T T E R Y - G R A D E L I T H I U M P R O D U C T I O N R A M P I N T E X A S 22
Page 23
Vehicle Deliveries (millions of units) K E Y M E T R I C S Q U A R T E R L Y (Unaudited) Operating Cash Flow ($B) Free Cash Flow ($B) (1) Net Income ($B) (2) Adjusted EBITDA ($B) (2) (3) 23 (1) Beginning in Q1'25, Capital expenditures is presented inclusive of purchases of energy generation and storage systems and all prior periods have been adjusted. (2) As a result of the adoption of the new crypto assets standard, the previously reported quarterly periods in 2024 have been recast. (3) Beginning in Q1'25, Adjusted EBITDA (non-GAAP) is presented net of digital assets gains and losses and all prior periods have been adjusted. 0.0 0.1 0.2 0.3 0.4 0.5 3Q-2023 4Q-2023 1Q-2024 2Q-2024 3Q-2024 4Q-2024 1Q-2025 2Q-2025 3Q-2025 4Q-2025 1Q-2026 2Q-2026 -3 -2 -1 0 1 2 3 4 5 6 7 3Q-2023 4Q-2023 1Q-2024 2Q-2024 3Q-2024 4Q-2024 1Q-2025 2Q-2025 3Q-2025 4Q-2025 1Q-2026 2Q-2026 0 1 2 3 4 5 6 7 8 3Q-2023 4Q-2023 1Q-2024 2Q-2024 3Q-2024 4Q-2024 1Q-2025 2Q-2025 3Q-2025 4Q-2025 1Q-2026 2Q-2026
Page 24
Operating Cash Flow ($B) Free Cash Flow ($B) (1) K E Y M E T R I C S T R A I L I N G 1 2 M O N T H S ( T T M ) (Unaudited) Net Income ($B) (2) Adjusted EBITDA ($B) (2) (3) Vehicle Deliveries (millions of units) 24 (1) Beginning in Q1'25, Capital expenditures is presented inclusive of purchases of energy generation and storage systems and all prior periods have been adjusted. (2) As a result of the adoption of the new crypto assets standard, the previously reported quarterly periods in 2024 have been recast. (3) Beginning in Q1'25, Adjusted EBITDA (non-GAAP) is presented net of digital assets gains and losses and all prior periods have been adjusted. 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 3Q-2023 4Q-2023 1Q-2024 2Q-2024 3Q-2024 4Q-2024 1Q-2025 2Q-2025 3Q-2025 4Q-2025 1Q-2026 2Q-2026 0 2 4 6 8 10 12 14 16 18 20 3Q-2023 4Q-2023 1Q-2024 2Q-2024 3Q-2024 4Q-2024 1Q-2025 2Q-2025 3Q-2025 4Q-2025 1Q-2026 2Q-2026 0 2 4 6 8 10 12 14 16 18 20 3Q-2023 4Q-2023 1Q-2024 2Q-2024 3Q-2024 4Q-2024 1Q-2025 2Q-2025 3Q-2025 4Q-2025 1Q-2026 2Q-2026
Page 25
Revenue Total quarterly revenue increased 26% YoY to $28.2B. YoY, revenue was impacted by the following items (1): + increase in vehicle deliveries + growth in Services and Other + positive FX impact of $0.5B 1 + growth in Energy Generation and Storage + higher automotive ancillary sales, primarily driven by an increase in FSD subscriptions - lower regulatory credit revenue - lower vehicle average selling price (ASP) (excl. FX impact 1), inclusive of mix impact Profitability Our quarterly operating income decreased 57% YoY to $0.4B, resulting in a 1.4% operating margin. YoY, operating income was prima rily impacted by the following items (1): + increase in vehicle deliveries + growth in Services and Other gross profit + lower average cost per vehicle primarily due to lower inbound duties + positive FX impact of $0.1B 1 + higher automotive ancillary sales, primarily driven by an increase in FSD subscriptions - increase in operating expenses driven by AI and other R&D projects, SBC (including 2025 CEO Performance Award) and SG&A - lower regulatory credit revenue - lower vehicle average selling price (ASP) (excl. FX impact 1), inclusive of mix impact - increase in energy warranty -related charges due to vendor cell issue Cash Quarter-end cash, cash equivalents and short -term investments was $43.5B. The sequential decrease of $1.2B was a result of negat ive free cash flow of $1.1B, driven by a sequential increase in capex of $3.3B. 25 (1) Impact is calculated on a constant currency basis. Actuals are compared against current results converted into USD using average exchange rates from Q2’25. K E Y M E T R I C S Y E A R – O V E R – Y E A R F I N A N C I A L S U M M A R Y
Page 26
F I N A N C I A L S T A T E M E N T S
Page 27
In millions of USD or shares as applicable, except per share data Q2-2025 Q3-2025 Q4-2025 Q1-2026 Q2-2026 REVENUES Automotive sales 15,787 20,359 16,750 15,473 20,006 Automotive regulatory credits 439 417 542 380 146 Automotive leasing 435 429 401 381 364 Total automotive revenues 16,661 21,205 17,693 16,234 20,516 Energy generation and storage 2,789 3,415 3,837 2,408 3,139 Services and other 3,046 3,475 3,371 3,745 4,581 Total revenues 22,496 28,095 24,901 22,387 28,236 COST OF REVENUES Automotive sales 13,567 17,365 13,874 12,616 16,866 Automotive leasing 228 225 206 196 187 Total automotive cost of revenues 13,795 17,590 14,080 12,812 17,053 Energy generation and storage 1,943 2,342 2,739 1,456 2,499 Services and other 2,880 3,109 3,073 3,399 3,933 Total cost of revenues 18,618 23,041 19,892 17,667 23,485 Gross profit 3,878 5,054 5,009 4,720 4,751 OPERATING EXPENSES Research and development 1,589 1,630 1,783 1,946 2,371 Selling, general and administrative 1,366 1,562 1,655 1,833 1,982 Restructuring and other — 238 162 — — Total operating expenses 2,955 3,430 3,600 3,779 4,353 INCOME FROM OPERATIONS 923 1,624 1,409 941 398 Interest income 392 439 449 434 422 Interest expense (86) (76) (85) (92) (81) Other income (expense), net 320 (28) (592) (535) 590 INCOME BEFORE INCOME TAXES 1,549 1,959 1,181 748 1,329 Provision for income taxes 359 570 325 257 201 NET INCOME 1,190 1,389 856 491 1,128 Net income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries 18 16 16 14 14 NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS 1,172 1,373 840 477 1,114 Less: Buy-out of noncontrolling interest - - - - (2) NET INCOME USED IN COMPUTING NET INCOME PER SHARE OF COMMON STOCK 1,172 1,373 840 477 1,116 Net income per share of common stock attributable to common stockholders Basic $ 0.36 $ 0.43 $ 0.26 $ 0.15 $ 0.34 Diluted $ 0.33 $ 0.39 $ 0.24 $ 0.13 $ 0.32 Weighted average shares used in computing net income per share of common stock Basic 3,223 3,227 3,231 3,234 3,237 Diluted 3,519 3,526 3,539 3,538 3,540 S T A T E M E N T O F O P E R A T I O N S (Unaudited) 27
Page 28
B A L A N C E S H E E T (Unaudited) In millions of USD 30-Jun-25 30-Sep-25 31-Dec-25 31-Mar-26 30-Jun-26 ASSETS Current assets Cash, cash equivalents and short-term investments 36,782 41,647 44,059 44,743 43,524 Accounts receivable, net 3,838 4,703 4,576 3,959 4,087 Inventory 14,570 12,276 12,392 14,434 13,752 Prepaid expenses and other current assets 5,943 6,027 7,615 6,612 7,395 Total current assets 61,133 64,653 68,643 69,748 68,758 Operating lease vehicles, net 5,230 5,019 4,912 4,530 4,253 Energy generation and storage systems, net 4,788 4,673 4,604 4,565 4,510 Property, plant and equipment, net 38,574 39,407 40,643 43,213 47,255 Operating lease right-of-use assets 5,633 5,783 6,027 6,332 6,386 Digital assets 1,235 1,315 1,008 786 674 Deferred tax assets 6,721 6,637 6,925 7,060 7,235 Other non-current assets (2) 5,253 6,248 5,045 7,490 9,453 Total assets 128,567 133,735 137,806 143,724 148,524 LIABILITIES AND EQUITY Current liabilities Accounts payable 13,212 12,819 13,371 14,696 15,324 Accrued liabilities and other 11,519 12,791 13,279 14,554 15,256 Deferred revenue 3,237 3,756 3,424 3,441 3,427 Current portion of debt and finance leases (1) 2,040 1,924 1,640 1,447 1,418 Total current liabilities 30,008 31,290 31,713 34,138 35,425 Debt and finance leases, net of current portion (1) 5,180 5,778 6,736 7,782 7,924 Deferred revenue, net of current portion 3,764 3,746 3,631 3,847 4,073 Other long-term liabilities 11,543 12,205 12,860 13,155 13,583 Total liabilities 50,495 53,019 54,940 58,922 61,005 Redeemable noncontrolling interests in subsidiaries 61 59 58 57 54 Total stockholders' equity 77,314 79,970 82,139 84,116 86,858 Noncontrolling interests in subsidiaries 697 687 670 629 607 Total liabilities and equity 128,567 133,735 137,806 143,724 148,524 (1) Breakdown of our debt is as follows: Non-recourse debt 6,953 7,458 8,150 9,017 9,059 Recourse debt 3 3 3 2 2 Days sales outstanding 15 14 17 17 13 Days payable outstanding 65 52 61 71 58 28 (2) Beginning in Q4'25, other non-current assets is presented inclusive of goodwill and intangible assets, net and all prior periods have been adjusted.
Page 29
In millions of USD Q2-2025 Q3-2025 Q4-2025 Q1-2026 Q2-2026 CASH FLOWS FROM OPERATING ACTIVITIES Net income 1,190 1,389 856 491 1,128 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and impairment 1,433 1,625 1,643 1,590 1,619 Stock-based compensation 635 663 954 1,030 1,151 Inventory and purchase commitments write-downs 136 65 49 77 110 Foreign currency transaction loss, net 24 106 292 287 312 Deferred income taxes 52 225 (111) (136) (165) Non-cash interest and other operating activities 27 162 37 1 32 SpaceX equity investment unrealized gain — — — — (1,005) Digital assets unrealized (gain) loss (284) (80) 307 222 112 Changes in operating assets and liabilities Accounts receivable (29) (907) 45 561 (184) Inventory (703) 1,991 (214) (2,255) 592 Operating lease vehicles 141 (11) (79) 174 86 Prepaid expenses and other assets (718) (1,143) (901) 231 (1,259) Accounts payable, accrued and other liabilities 627 1,646 1,397 1,401 1,940 Deferred revenue 9 507 (462) 263 228 Net cash provided by operating activities 2,540 6,238 3,813 3,937 4,697 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (2,394) (2,248) (2,393) (2,493) (5,789) Purchase of SpaceX equity investment — — — (2,002) — Purchases of short-term investments (7,485) (11,402) (12,207) (8,318) (7,963) Proceeds from maturities of short-term investments 6,935 9,295 8,072 7,790 7,831 Purchase of intangible assets — — — — (7) Net cash used in investing activities (2,944) (4,355) (6,528) (5,023) (5,928) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuances of debt 2,425 1,182 1,354 4,331 348 Repayments of debt (2,828) (669) (748) (3,530) (392) Debt issuance costs (1) (4) (1) — (4) Proceeds from exercises of stock options and other stock issuances, net of issuance costs 215 512 146 361 107 Principal payments on finance leases (19) (18) (19) (18) (19) Recovery of legal fees associated with shareholder settlement — — — 98 18 Distributions paid to noncontrolling interests in subsidiaries (14) (20) (22) (70) (21) Net cash (used in) provided by financing activities (222) 983 710 1,172 37 Effect of exchange rate changes on cash and cash equivalents and restricted cash 111 (17) 37 (47) (36) Net (decrease) increase in cash and cash equivalents and restricted cash (515) 2,849 (1,968) 39 (1,230) Cash and cash equivalents and restricted cash at beginning of period 17,250 16,735 19,584 17,616 17,655 Cash and cash equivalents and restricted cash at end of period 16,735 19,584 17,616 17,655 16,425 S T A T E M E N T O F C A S H F L O W S (Unaudited) 29
Page 30
In millions of USD or shares as applicable, except per share data Q2-2025 Q3-2025 Q4-2025 Q1-2026 Q2-2026 Net income attributable to common stockholders (GAAP) 1,172 1,373 840 477 1,114 Stock-based compensation expense, net of tax 443 459 682 803 989 Digital assets unrealized (gain) loss, net of tax (222) (62) 239 173 87 SpaceX equity investment unrealized gain, net of tax - - - - (763) Certain tax items (1) - - - - (274) Net income attributable to common stockholders (non-GAAP) 1,393 1,770 1,761 1,453 1,153 Less: Buy-out of noncontrolling interest - - - - (2) Net income used in computing diluted EPS attributable to common stockholders (non-GAAP) 1,393 1,770 1,761 1,453 1,155 EPS attributable to common stockholders, diluted (GAAP) 0.33 0.39 0.24 0.13 0.32 Stock-based compensation expense, net of tax, per share 0.13 0.13 0.19 0.23 0.29 Digital assets unrealized (gain) loss per share, net of tax (0.06) (0.02) 0.07 0.05 0.02 SpaceX equity investment unrealized gain per share, net of tax - - - - (0.22) Certain tax items, per share (1) - - - - (0.08) EPS attributable to common stockholders, diluted (non-GAAP) 0.40 0.50 0.50 0.41 0.33 Shares used in EPS calculation, diluted (GAAP and non-GAAP) 3,519 3,526 3,539 3,538 3,540 Net income attributable to common stockholders (GAAP) 1,172 1,373 840 477 1,114 Interest expense 86 76 85 92 81 Provision for income taxes 359 570 325 257 201 Depreciation, amortization and impairment 1,433 1,625 1,643 1,590 1,619 Stock-based compensation expense 635 663 954 1,030 1,151 Digital assets unrealized (gain) loss (284) (80) 307 222 112 SpaceX equity investment unrealized gain - - - - (1,005) Adjusted EBITDA (non-GAAP) 3,401 4,227 4,154 3,668 3,273 Total revenues 22,496 28,095 24,901 22,387 28,236 Adjusted EBITDA margin (non-GAAP) 15.1% 15.0% 16.7% 16.4% 11.6% Automotive gross margin (GAAP) 17.2% 17.0% 20.4% 21.1% 16.9% Less: Total regulatory credit revenue recognized 2.2% 1.6% 2.5% 1.9% 0.6% Automotive gross margin excluding regulatory credit sales (non-GAAP) 15.0% 15.4% 17.9% 19.2% 16.3% R E C O N C I L I A T I O N O F G A A P T O N O N – G A A P F I N A N C I A L I N F O R M A T I O N (Unaudited) 30 (1) Certain tax items consist of the release of valuation allowances on certain California deferred tax assets in Q2'26 and accruals related to pillar two.
Page 31
R E C O N C I L I A T I O N O F G A A P T O N O N – G A A P F I N A N C I A L I N F O R M A T I O N (Unaudited) In millions of USD 3Q-2023 4Q-2023 1Q-2024 2Q-2024 3Q-2024 4Q-2024 1Q-2025 2Q-2025 3Q-2025 4Q-2025 1Q-2026 2Q-2026 Net cash provided by operating activities – TTM (GAAP) 12,164 13,256 10,985 11,532 14,479 14,923 16,837 15,765 15,748 14,747 16,528 18,685 Capital expenditures – TTM (1) (8,450) (8,899) (9,603) (9,815) (10,869) (11,342) (10,057) (10,179) (8,914) (8,527) (9,528) (12,923) Free cash flow – TTM (non-GAAP) (1) 3,714 4,357 1,382 1,717 3,610 3,581 6,780 5,586 6,834 6,220 7,000 5,762 In millions of USD 3Q-2023 4Q-2023 1Q-2024 2Q-2024 3Q-2024 4Q-2024 1Q-2025 2Q-2025 3Q-2025 4Q-2025 1Q-2026 2Q-2026 Net income attributable to common stockholders – TTM (GAAP) (2) 10,756 14,997 13,874 12,571 12,891 7,091 6,110 5,882 5,082 3,794 3,862 3,804 Interest expense – TTM 128 156 203 261 315 350 365 365 349 338 339 334 Provision for (benefit from) income taxes – TTM (2) 1,027 (5,001) (4,779) (4,731) (4,296) 1,837 1,523 1,511 1,479 1,423 1,511 1,353 Depreciation, amortization and impairment – TTM 4,424 4,667 4,867 4,991 5,104 5,368 5,569 5,724 6,001 6,148 6,291 6,477 Stock-based compensation expense – TTM 1,747 1,812 1,918 1,912 1,904 1,999 2,048 2,244 2,450 2,825 3,282 3,798 Digital assets unrealized loss (gain) – TTM (2) 34 — (335) (235) (242) (589) (129) (513) (586) 68 165 561 SpaceX equity investment unrealized gain – TTM — — — — — — — — — — — (1,005) Adjusted EBITDA – TTM (non-GAAP) (2) (3) 18,116 16,631 15,748 14,769 15,676 16,056 15,486 15,213 14,775 14,596 15,450 15,322 In millions of USD 4Q-2022 1Q-2023 2Q-2023 3Q-2023 4Q-2023 1Q-2024 2Q-2024 3Q-2024 4Q-2024 1Q-2025 2Q-2025 3Q-2025 4Q-2025 1Q-2026 2Q-2026 Net cash provided by operating activities (GAAP) 3,278 2,513 3,065 3,308 4,370 242 3,612 6,255 4,814 2,156 2,540 6,238 3,813 3,937 4,697 Capital expenditures (1) (1,858) (2,073) (2,060) (2,459) (2,307) (2,777) (2,272) (3,513) (2,780) (1,492) (2,394) (2,248) (2,393) (2,493) (5,789) Free cash flow (non-GAAP) (1) 1,420 440 1,005 849 2,063 (2,535) 1,340 2,742 2,034 664 146 3,990 1,420 1,444 (1,092) In millions of USD 4Q-2022 1Q-2023 2Q-2023 3Q-2023 4Q-2023 1Q-2024 2Q-2024 3Q-2024 4Q-2024 1Q-2025 2Q-2025 3Q-2025 4Q-2025 1Q-2026 2Q-2026 Net income attributable to common stockholders (GAAP) (2) 3,687 2,513 2,703 1,853 7,928 1,390 1,400 2,173 2,128 409 1,172 1,373 840 477 1,114 Interest expense 33 29 28 38 61 76 86 92 96 91 86 76 85 92 81 Provision for (benefit from) income taxes (2) 276 261 323 167 (5,752) 483 371 602 381 169 359 570 325 257 201 Depreciation, amortization and impairment 989 1,046 1,154 1,235 1,232 1,246 1,278 1,348 1,496 1,447 1,433 1,625 1,643 1,590 1,619 Stock-based compensation expense 419 418 445 465 484 524 439 457 579 573 635 663 954 1,030 1,151 Digital assets unrealized loss (gain) (2) 34 — — — — (335) 100 (7) (347) 125 (284) (80) 307 222 112 SpaceX equity investment unrealized gain — — — — — — — — — — — — — — (1,005) Adjusted EBITDA (non-GAAP) (2) (3) 5,438 4,267 4,653 3,758 3,953 3,384 3,674 4,665 4,333 2,814 3,401 4,227 4,154 3,668 3,273 31 TTM = Trailing twelve months (1) Beginning in Q1'25, Capital expenditures is presented inclusive of purchases of energy generation and storage systems and all prior periods have been adjusted. (2) As a result of the adoption of the new crypto assets standard, the previously reported quarterly periods in 2024 have been recast. (3) Beginning in Q1'25, Adjusted EBITDA (non-GAAP) is presented net of digital assets gains and losses and all prior periods have been adjusted.
Page 32
A D D I T I O N A L I N F O R M A T I O N WEBCAST INFORMATION Tesla will provide a live webcast of its second quarter 2026 financial results conference call beginning at 4:30 p.m. CT on July 22, 2026 at ir .tesla.com. This webcast will also be available for replay for approximately one year thereafter. CERTAIN TERMS When used in this update, certain terms have the following meanings. Our vehicle deliveries include only vehicles that have been transferred to end customers with all paperwork correctly completed. Our energy product deployment volume includes both customer units when installed and equipment sales at time of delivery. “Net income attributable to common stockholders (non-GAAP)" is equal to (i) net income attributable to common stockholders before (ii)(a) stock-based compensation expense, net of tax, (b) digital assets unrealized (gain) loss, net of tax, (c) SpaceX equity investment unrealized gain, net of tax and (d) certain tax items. "Adjusted EBITDA (non-GAAP)" is equal to (i) net income attributable to common stockholders before (ii)(a) interest expense, (b) provision for (benefit from) income taxes, (c) depreciation, amortization and impairment, (d) stock-based compensation expense (e) digital assets unrealized (gain) loss and (f) SpaceX equity investment unrealized gain. "Free cash flow" is operating cash flow less capital expenditures. Average cost per vehicle is cost of automotive sales divided by new vehicle deliveries (excluding operating leases). “Days sales outstanding” is equal to (i) average accounts receivable, net for the period divided by (ii) total revenues and multiplied by (iii) the number of days in the period. “Days payable outstanding” is equal to (i) average accounts payable for the period divided by (ii) total cost of revenues and multiplied by (iii) the number of days in the period. “Days of supply” is calculated by dividing new car ending inventory by the relevant period's deliveries and using trading days. Constant currency impacts are calculated by comparing actuals against current results converted into USD using average exchange rates from the prior period. NON-GAAP FINANCIAL INFORMATION Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis to supplement our consolidated financial results. Our non-GAAP financial measures include non-GAAP net income (loss) attributable to common stockholders, non-GAAP net income (loss) attributable to common stockholders on a diluted per share basis (calculated using weighted average shares for GAAP diluted net income (loss) attributable to common stockholders), Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP automotive gross margin and free cash flow. These non-GAAP financial measures also facilitate management’s internal comparisons to T esla’s historical performance as well as comparisons to the operating results of other companies. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. Management also believes that presentation of the non-GAAP financial measures provides useful information to our investors regarding our financial condition and results of operations, so that investors can see through the eyes of Tesla management regarding important financial metrics that Tesla uses to run the business and allowing investors to better understand Tesla’s performance. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding T esla’s operating performance. A reconciliation between GAAP and non-GAAP financial information is provided above. FORWARD-LOOKING ST ATEMENTS Certain statements in this update, including, but not limited to, statements in the “Outlook” section; statements relating to the development, strategy, ramp, production and capacity, demand and market growth, cost, pricing and profitability, investment, deliveries, deployment, availability and other features and improvements and timing of existing and future Tesla products and services and supporting infrastructure; statements regarding operating margin, operating profits, spending and liquidity; and statements regarding expansion, improvements and/or ramp and related timing at our facilities are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions and management’s current expectations, involve certain risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statement. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the risk of delays in launching and/or manufacturing our products, services and features cost-effectively; our ability to build and/or grow our products and services, sales, delivery, installation, servicing and charging capabilities and effectively manage this growth; our ability to successfully and timely develop, introduce and scale, as well as our consumers’ demand for, products and services based on artificial intelligence, robotics and automation, electric vehicles, advanced driver assistance systems, and ride-hailing services generally and our vehicles and services specifically; the ability of suppliers to deliver components according to schedules, prices, quality and volumes acceptable to us, and our ability to manage such components effectively; any issues with lithium-ion cells or other components manufactured at our factories; our ability to ramp our factories in accordance with our plans; our ability to procure supply of battery cells, including through our own manufacturing; risks relating to international operations and expansion, including unfavorable and uncertain regulatory, political, economic, tax, tariff, export controls and labor conditions; any failures by T esla products to perform as expected or if product recalls occur; the risk of product liability claims; competition in the automotive, transportation and energy product and services and robotics markets; our ability to maintain public credibility and confidence in our long-term business prospects; our ability to manage risks relating to our various product financing programs; the status of government and economic incentives for electric vehicles and energy products; our ability to attract, hire and retain key employees and qualified personnel; our ability to maintain the security of our information and production and product systems; our compliance with various regulations and laws applicable to our operations and products, which may evolve from time to time; risks relating to our indebtedness and financing strategies; and adverse foreign exchange movements. More information on potential factors that could affect our financial results is included from time to time in our Securities and Exchange Commission filings and reports, including the risks identified under the section captioned “Risk Factors” in our annual report on Form 10-K filed with the SEC on January 28, 2026 and subsequent quarterly reports on Form 10-Q. Tesla disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events or otherwise. 32