Tesla is not planning to succeed in “quantity manufacturing” of three of its latest merchandise — the Cybercab, the Tesla Semi, and its Megapack 3 industrial energy-storage resolution — in 2026, based on a second-quarter shareholder letter printed Wednesday. The corporate additionally eliminated language from its first-quarter letter about its Optimus robotic reaching “quantity manufacturing.”
The corporate mentioned Wednesday that it’s attempting to extend battery manufacturing, particularly across the firm’s 4680 cell, so as to begin constructing the Cybercab and Tesla Semi at scale. It didn’t provide a cause for pushing again quantity manufacturing of the brand new Megapack, however Tesla CEO Elon Musk cautioned concerning the challenges of Optimus.
“That is going to be the toughest product to scale manufacturing that we’ve ever made at Tesla, as a result of all the things on the robotic is new,” Musk mentioned about Optimus on a convention name Wednesday.
Tesla began making the primary manufacturing Cybercabs at its manufacturing facility in Austin, Texas, earlier this 12 months however mentioned within the letter that it’s nonetheless constructing out the manufacturing traces for the Semi and Optimus. The corporate had mentioned as lately as January that the Cybercab, Semi, and Megapack 3 would attain “quantity manufacturing” this 12 months.
The pullback comes as the corporate plows cash into its subsequent technology of merchandise whereas making an attempt to shift from an EV maker to an AI and robotics firm. Tesla’s outcomes, which confirmed internet earnings falling 5% year-over-year to $1.1 billion, capital expenditures greater than doubling, and unfavourable free money circulate, had been barely buoyed by an uptick in income.
Nonetheless, that income increase wasn’t sufficient to offset the price of enterprise and Tesla’s push to develop and launch new merchandise, which Tesla CFO Vaibhav Taneja previously said would result in unfavourable money circulate for the rest of the 12 months.
The corporate reported income of $28.2 billion, a 26% improve from the $22.5 billion it generated within the second quarter of 2025. Tesla’s second-quarter income additionally grew from the earlier quarter’s haul of $22.38 billion.
The majority of its income got here from promoting and leasing its EVs — and people outcomes improved considerably this quarter.
The corporate reported automotive income of $20.5 billion within the second quarter, in comparison with $16.6 billion within the same-year in the past interval. Tesla delivered more than 480,000 vehicles within the second quarter, a rise of greater than 120,000 from the primary quarter.
It was Tesla’s finest consequence for total gross sales because the third quarter of final 12 months, when it delivered almost 500,000 autos. The rise was pushed by document gross sales in a number of markets exterior of the U.S., together with South Korea, Australia, Colombia, Japan, Taiwan, Thailand, Portugal, the Philippines, Chile, Slovenia, and Lithuania, the corporate mentioned in its shareholder letter.
Tesla’s second-quarter income outcomes improved from a 12 months in the past when the corporate suffered from a mix of falling EV sales, decrease common promoting costs, much less money from regulatory credit, and a drop in photo voltaic and power income.
Gross sales of power storage and photo voltaic additionally proved to be a standout, enhancing 13% to $3.1 billion. And subscriptions to Tesla’s superior driver-assistance system, referred to as Full Self-Driving (Supervised) proceed to rise. The corporate reported 1.48 million subscriptions, a 56% improve from the identical interval final 12 months.
Tesla’s backside line, nonetheless, slipped because it poured cash into new merchandise and noticed its gross margins squeezed.
Tesla reported internet earnings of $1.1 billion, a 5% lower from the identical interval a 12 months in the past. On the identical time, its working bills ballooned by 47% to $4.3 billion. In the meantime, Tesla had unfavourable free money circulate of $1 billion within the second quarter, a stark change from the $1.44 billion in optimistic free money circulate it reported final quarter and the $146 million it had in the identical interval final 12 months.
The corporate’s working earnings was $398 million, a 57% drop from the $932 million it reported in the identical interval final 12 months.
A 12 months in the past, Tesla known as the second quarter of 2025 a “seminal level” within the firm’s historical past and the start of its transition from an organization that sells electrical autos, photo voltaic, and power storage to at least one that leads in “AI, robotics and associated companies.”
That transition remains to be underway and Musk has mentioned the corporate would increase spending to realize its objective. Tesla mentioned its capital expenditure will be $25 billion in 2026, about thrice greater than it traditionally has spent.
This spring, the corporate ended manufacturing of its flagship Mannequin S sedan and Mannequin X SUV autos at its Fremont, California, manufacturing facility to make method for its Optimus humanoid robotic. It is usually bringing its Tesla Robotaxi service to new cities, albeit with a restricted variety of autos. And it’s nonetheless pushing to promote house owners on Full Self-Driving (Supervised), and finally make that product succesful sufficient to deal with all driving with out the necessity of a human.
This story has been up to date with data from Tesla’s earnings name.
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