Tesla delivered 480,126 vehicles in the second quarter of 2026, up 25% from the same period last year, generating record revenue of $28.24 billion. However, this increase in deliveries was not enough to prevent the company's operating income from plummeting 57% to $400 million.
The Model 3 and Model Y accounted for 467,762 of these deliveries, with the remaining models (Model S, Model X, and Cybertruck) contributing 12,364. This marks the company's highest-ever quarterly delivery total.
View Price on AmazonDespite the increase in deliveries, Tesla's operating income fell significantly due to a decline in gross margin for the automotive side of its business, which dropped to 16.3%. Additionally, the average revenue per vehicle decreased to $42,730 from $45,345 last year.
The company's regulatory credit revenue also declined, falling to $146 million from $380 million in the first quarter of 2026 and $439 million in the second quarter of 2025.
Tesla is investing heavily in research and development, with costs jumping 49% to $2.37 billion. The company is spending on artificial intelligence, its Robotaxi network, and the Optimus humanoid robot.
Tesla's energy storage business performed well in the second quarter, with the company deploying a record 13.5 gigawatt-hours of combined battery capacity. The Full Self-Driving subscriber base also approached 1.5 million users, potentially driven by the expansion of FSD to several European countries.
The quarterly report highlights a significant problem for Tesla: despite selling more cars, the company is not making as much money from them as it once did. Tesla is asking investors to accept lower returns from its auto business as it continues to invest in future technologies.
Source: insideevs.com
