Tesla Inc (TSLA) Q2 2026 Earnings Call Highlights: Record Deliveries and Strategic Investments...

GuruFocus News Thu, July 23, 2026 at 1:01 AM EDT 3 min read This article first appeared on GuruFocus. Record Q2 Deliveries: Achieved record deliveries globally with sequential growth in the Americas (60%), APAC (27%), and EMEA (12%). Model Y Performance: Set records in key markets including the Netherlands, Australia, and New Zealand. FSD Subscription: 55% of North American deliveries included FSD subscription at delivery. Automotive Gross Margin: Declined from 19.2% to 16.3%, excluding regulatory credits. Energy Storage Deployment: 13.5 GWh deployed, a 53% sequential increase. Energy Gross Margin: Declined from 39.5% to 20.4% due to warranty true-up and non-repeating tariff benefits. Service and Other Margins: Improved from 9.2% to 14.1%, an all-time high. Net Income: Positively impacted by a $1 billion gain on SpaceX holdings, offset by $300 million FX losses and $100 million Bitcoin losses. Free Cash Flow: Negative for the quarter due to more than doubled CapEx. CapEx: Expected to exceed $25 billion for the year, with further increases in the second half of 2026. Debt Facilities: Capacity to borrow up to $30 billion to accelerate investments. Warning! GuruFocus has detected 6 Warning Signs with TSLA. Is TSLA fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Tesla Inc (NASDAQ:TSLA) achieved record Q2 deliveries, with Model Y becoming the best-selling car globally. The Full Self-Driving (FSD) feature is a significant demand driver, with high take rates in approved locations. The energy business is growing rapidly, with a 53% sequential increase in energy storage deployments. Tesla Inc (NASDAQ:TSLA) is making substantial investments in AI and infrastructure, positioning for future growth. The Robotaxi program has shown exponential growth with an impeccable safety record over 380,000 miles. Negative Points Automotive gross margins, excluding regulatory credits, declined from 19.2% to 16.3% sequentially. Energy gross margins fell from 39.5% to 20.4% due to warranty true-ups and increased competition. Production growth is limited by supply chain constraints, including batteries and electronic components. Free cash flow was negative for the quarter due to a significant increase in CapEx. Tesla Inc (NASDAQ:TSLA) faces challenges in scaling production for new products like Optimus due to the lack of an existing supply chain. Q & A Highlights Q: Can you provide an update on the Robotaxi program and its scaling efforts? A: Ashok Elluswamy, Tesla's VP of AI, stated that the Robotaxi program has been operating with an impeccable safety record, having driven over 380,000 miles without notable incidents. The program is expanding rapidly, with a focus on scaling to entire states rather than city by city. The technology improvements in the V15 FSD software are expected to enhance safety and capability, supporting exponential growth.