Tesla Reports Q2 Revenue of $26.21B, Free Cash Flow Turns Negative at -$3.25B

According to Yahoo Finance, Tesla reported Q2 earnings on July 22 after market close, posting revenue of $26.21 billion (up 16% year-over-year), adjusted earnings per share of $0.50, and EBITDA of $4 billion, compared to $2.3 billion in the prior year period. The company delivered 483,986 vehicles in Q2, exceeding Wall Street consensus of 397,000 and marking a 25% increase year-over-year and 34% jump from Q1.

Capital expenditures surged to $6.7 billion in Q2, causing free cash flow to collapse to -$3.254 billion versus +$5.6 billion a year earlier. Morgan Stanley analyst Andrew Percocco noted investor scrutiny is intensifying on whether the capex increase can justify accelerating AI investments in robotaxi and Optimus, given the cash flow deterioration.