Tesla Q2 Beat Revenue But EPS Miss 35%: Free Cash Flow Collapses -$1.09B as Capex Doubles
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- Tesla reported a record Q2 revenue of $28.24 billion and 480,126 vehicle deliveries, but adjusted EPS missed estimates at $0.33 due to surging expenses and operating margins compressing to 1.4%.
- Free cash flow plunged to negative $1.09 billion as capital expenditures more than doubled to $5.79 billion to fund aggressive investments in AI, robotics, and the Cybercab.
- Management expects full-year 2026 capital expenditures to exceed $25 billion, fueling ongoing debates over whether heavy spending will yield long-term returns or continue eroding profitability.