Tesla Q2 Highlights: Bigger AI Bets, Thinner Margins, Mixed Results

Tesla's Q2 revenue beat expectations at $28.24 billion but adjusted EPS missed estimates as margins came under pressure from higher costs, weaker automotive profitability and a sharp decline in regulatory credit revenue. Capex surged to $5.8 billion, turning free cash flow negative, while the company raised its 2026 capex outlook to over $25 billion for AI, robotaxis, Optimus humanoid robots and manufacturing. Shares fell in after-hours trading as investors weighed the heavy spending against uncertain near-term returns.