Tesla Earnings Miss EPS Expectations but Beat on Revenue

Tesla (TSLA) delivered a mixed Q2 2026: record revenue of $28.24 billion beat consensus by roughly $650 million, but adjusted EPS of $0.33 fell well short of the $0.51 analysts expected. The revenue strength was driven largely by auto sales volume rather than pricing.

The bigger flag was cash. Tesla posted negative free cash flow of about $1.09 billion, its first cash-burning quarter since early 2024, as capital expenditures climbed to $5.79 billion . Operating cash flow of $4.70 billion cushioned the burn, which still came in better than many analysts had feared.

Shares slipped after the print even though the core auto business held up, as investors focused on the earnings miss and the spending ramp . Tesla continues to pour capital into AI, Robotaxi, and manufacturing capacity. Attention now turns to Q3 guidance and whether the elevated spend begins to convert into margin recovery.

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