TSLA Fundamental Analysis & Score

Tesla: filing-based business context

Historical filing-based context — Quarter ended June 30, 2026 (Q2 2026), compared with the quarter ended June 30, 2025 (Q2 2025). This editorial context is separate from the live provider-based score above. This is dated filing-based context, not a live business update.

Tesla's Form 10-Q for the second quarter of 2026 reports GAAP revenue of $28,236 million, up from $22,496 million a year earlier, and net income attributable to common stockholders of $1,114 million, down from $1,172 million. Income from operations fell to $398 million from $923 million; the 10-Q says research and development expense rose $782 million, primarily on AI and other programs. Other income, net included a $1.00 billion net gain on Tesla's SpaceX equity investment. Amounts are in USD millions unless stated, and “Q2 2026” means the three months ended June 30, 2026.

How Tesla earns revenue

Tesla reports two segments: automotive and energy generation and storage. Note 14 calls the first one “Automotive”; the MD&A calls it “automotive & services and other” because it also holds services and other revenue. In Q2 2026 total automotive revenues were 20,516, services and other were 4,581 and energy generation and storage was 3,139, against total revenues of 28,236. That is about 72.7%, 16.2% and 11.1% of the total (calculated by StrongBuyAnalytics). Source: 10-Q: Note 14 – Segment Reporting and Information about Geographic Areas; 10-Q: Item 2 MD&A – Results of Operations: Revenues

Automotive revenue has three lines. Sales were 20,006 against 15,787, regulatory credits were 146 against 439 and leasing was 364 against 435. The Q2 2026 Update reports 480,126 vehicles delivered against 384,122, of which 467,762 were Model 3 and Model Y (373,728 a year earlier) and 7,580 were subject to operating lease accounting (6,670). It reports 451,758 vehicles produced against 410,244, and 1.48 million active FSD subscriptions against 0.95 million, a measure it says includes upfront payments and monthly subscriptions and excludes free trials. Source: 10-Q: Item 2 MD&A – Results of Operations: Revenues; 8-K Ex. 99.1: Operational Summary

Energy storage volumes are uneven from quarter to quarter. The 10-Q says that for Megapack, “energy storage deployments can vary meaningfully quarter to quarter depending on the timing of specific project milestones and logistics.” The Q2 2026 Update reports 13.5 GWh of storage deployed in Q2 2026 against 9.6 GWh a year earlier and 8.8 GWh in Q1 2026, and the 10-Q says 22.3 GWh were deployed in the first half. Energy generation and storage revenue was 3,139 against 2,789. Source: 10-Q: Item 2 MD&A – Management Opportunities, Challenges and Uncertainties and 2026 Outlook: Energy Generation and Storage Demand, Production and Deployment; 10-Q: Item 2 MD&A – Overview; 8-K Ex. 99.1: Operational Summary

Part of Tesla's revenue comes from a related party. Note 13 says Tesla recognized 318 of revenues and 242 of cost of revenues from SpaceX in Q2 2026 (405 and 307 in the first half) for SpaceX's purchase of Megapack products in the ordinary course of business, and that other transactions with SpaceX and other related parties were immaterial. The 10-Q says Tesla's CEO also serves as SpaceX's CEO. The 318 is about 1.1% of Q2 2026 total revenues (calculated by StrongBuyAnalytics). Source: 10-Q: Note 13 – Related Party Transactions; 10-Q: Note 1 – Summary of Significant Accounting Policies

Reported figures

Each figure shows its period, unit and accounting basis. Changes are calculated by StrongBuyAnalytics from the rounded figures shown, so they can differ slightly from percentages a company reports. “pp” means percentage points; “n/m” means not meaningful because a value is zero or negative.

Revenue by line

GAAP, USD millions. Q2 2026 = three months ended June 30, 2026; Q2 2025 = three months ended June 30, 2025. The three indented lines add up to total automotive revenues, and total automotive revenues, services and other, and energy generation and storage add up to total revenues.

Source: 10-Q: Consolidated Statements of Operations; 10-Q: Item 2 MD&A – Results of Operations: Revenues

Segment revenue, gross profit and margin

GAAP, USD millions except percentages. Q2 2026 = three months ended June 30, 2026; Q2 2025 = three months ended June 30, 2025. Note 14 calls the first segment “Automotive”; the MD&A calls it “automotive & services and other” because it includes services and other revenue. Gross margins are as reported in the 10-Q.

Source: 10-Q: Note 14 – Segment Reporting and Information about Geographic Areas; 10-Q: Item 2 MD&A – Results of Operations: Cost of Revenues and Gross Margin

Revenue by sales location

GAAP, USD millions. Q2 2026 = three months ended June 30, 2026; Q2 2025 = three months ended June 30, 2025. Revenue is assigned by the sales location of Tesla's products, as Note 14 describes it.

Source: 10-Q: Note 14 – Segment Reporting and Information about Geographic Areas

Profitability and per-share results

USD millions except per-share amounts and percentages. Q2 2026 = three months ended June 30, 2026; Q2 2025 = three months ended June 30, 2025. GAAP rows are from the 10-Q; the two margin rows are as reported in the Q2 2026 Update. Non-GAAP rows follow Tesla's own definitions and adjustments, which the Q2 2026 Update reconciles to GAAP.

Source: 10-Q: Consolidated Statements of Operations; 8-K Ex. 99.1: Financial Summary; 8-K Ex. 99.1: Reconciliation of GAAP to Non–GAAP Financial Information

Vehicle production and deliveries

Vehicle counts (units), not dollars. Q2 2026 = three months ended June 30, 2026; Q2 2025 = three months ended June 30, 2025. Tesla reports these in the Q2 2026 Update, which it labels unaudited; the 10-Q does not report them. Within production and within deliveries, Model 3/Y and other models add up to the total. Deliveries subject to operating lease accounting are part of total deliveries.

Source: 8-K Ex. 99.1: Operational Summary

What changed in the latest reported quarter

Total revenues rose to 28,236 from 22,496 (up 5,740, or 26%). The 10-Q attributes the 4,219 (27%) rise in automotive sales revenue to an increase of approximately 25% in cash deliveries. It attributes the 1,535 (50%) rise in services and other revenue primarily to higher used vehicle sales volume and average selling price, non-warranty maintenance services, collision revenue and paid Supercharging sessions. It attributes the 350 (13%) rise in energy generation and storage revenue primarily to more Megapack deployments, partly offset by a lower average selling price per Megapack unit and fewer Powerwall deployments. Source: 10-Q: Item 2 MD&A – Results of Operations: Revenues; 10-Q: Consolidated Statements of Operations

Regulatory credit revenue fell to 146 from 439 (down 293, or 67%). The 10-Q says credit revenue depends on Tesla's supply of credits, changes in regulation, production and sales, and on other automobile manufacturers' demand, and that “recent governmental and regulatory actions have restricted certain regulatory credit programs tied to our products.” Automotive leasing revenue fell to 364 from 435 (down 71, or 16%). Source: 10-Q: Item 2 MD&A – Results of Operations: Revenues

Gross profit was 4,751 against 3,878, and total GAAP gross margin was 16.8% against 17.2%. The 10-Q reports total automotive gross margin of 16.9% against 17.2%, which it attributes primarily to changes in automotive sales revenue and cost and a decrease in regulatory credits revenue. The automotive & services and other segment's gross margin was 16.4% against 15.4%, which it attributes to automotive sales gross margin and an improvement in services and other gross margin. Energy generation and storage gross margin fell to 20.4% from 30.3%; its cost of revenue rose 556 (29%), which the 10-Q attributes primarily to deployment fluctuations and a higher average cost per MWh driven by sales mix and unfavorable warranty adjustments. Source: 10-Q: Item 2 MD&A – Results of Operations: Cost of Revenues and Gross Margin; 10-Q: Note 14 – Segment Reporting and Information about Geographic Areas; 8-K Ex. 99.1: Financial Summary

Operating expenses rose to 4,353 from 2,955. Research and development was 2,371 against 1,589 (up 782, or 49%), which the 10-Q attributes primarily to AI and other programs and to a 189 increase in stock-based compensation. Selling, general and administrative expense was 1,982 against 1,366 (up 616, or 45%), which the 10-Q says was driven by a 283 increase in stock-based compensation, primarily related to the 2025 CEO Performance Award, a 134 increase in employee and labor costs, a 109 increase in operating expenses including litigation related expenses and a 68 increase in facilities related expenses. The 10-Q also says Tesla is “investing heavily in research and development to accelerate our AI, software and fleet-based profits for further revenue growth, which will negatively impact our profitability during this phase.” Income from operations was 398 against 923, an operating margin of 1.4% against 4.1% as reported in the Q2 2026 Update. Source: 10-Q: Item 2 MD&A – Results of Operations: Research and Development Expense; 10-Q: Item 2 MD&A – Results of Operations: Selling, General and Administrative Expense; 10-Q: Item 2 MD&A – Overview; 8-K Ex. 99.1: Financial Summary

Other income, net was 590 against 320. The 10-Q says it changed favorably by 270, primarily due to a mark-to-market gain on the SpaceX equity investment Tesla entered into in March 2026 and adjustments on its bitcoin digital assets, as well as foreign currency exchange rate fluctuations on intercompany balances, which it does not typically hedge. Interest income was 422 against 392. The provision for income taxes was 201 against 359, an effective rate of 15% against 23%. The 10-Q says releasing the valuation allowance on California deferred tax assets after California Senate Bill 122 was enacted, together with an immaterial accrual of pillar two tax, produced a 274 income tax benefit in the provision, and attributes the lower rate primarily to that release and to the mix of jurisdictional earnings, partly offset by the non-deductibility of stock-based compensation related to the 2025 CEO Performance Award. Source: 10-Q: Item 2 MD&A – Results of Operations: Other Income, Net; 10-Q: Item 2 MD&A – Results of Operations: Provision for Income Taxes; 10-Q: Note 10 – Income Taxes

Net income attributable to common stockholders was 1,114 against 1,172, and diluted earnings per share were $0.32 against $0.33 on 3,540 million diluted shares against 3,519 million. The Q2 2026 Update's non-GAAP net income was 1,153 against 1,393 and non-GAAP diluted earnings per share were $0.33 against $0.40. Its reconciliation adds back stock-based compensation net of tax (989 against 443) and digital assets unrealized losses net of tax (87, against a gain of 222 a year earlier), and removes the SpaceX equity investment unrealized gain net of tax (763) and certain tax items (274). Adjusted EBITDA, which also adds back stock-based compensation (1,151 against 635) and removes the pre-tax SpaceX gain (1,005), was 3,273 against 3,401, a margin of 11.6% against 15.1%. Tesla defines all of these measures. Source: 10-Q: Consolidated Statements of Operations; 8-K Ex. 99.1: Financial Summary; 8-K Ex. 99.1: Reconciliation of GAAP to Non–GAAP Financial Information

Cash, funding and capital spending

Cash and cash equivalents were 15,219 and short-term investments were 28,305 at June 30, 2026, together $43.52 billion, down $535 million from the end of 2025. Balances held in foreign currencies had a U.S. dollar equivalent of $3.80 billion, primarily euros and Chinese yuan. The 10-Q says Tesla believes its current and potential sources of funding will provide adequate liquidity during the 12-month period following June 30, 2026, as well as in the long-term. Source: 10-Q: Consolidated Balance Sheets; 10-Q: Item 2 MD&A – Liquidity and Capital Resources; 10-Q: Item 2 MD&A – Overview

In the first half of 2026 net cash provided by operating activities was 8,634 against 4,696, net cash used in investing activities was 10,951 against 4,595, and financing activities provided 1,209 against a use of 554. The 10-Q says capital expenditures were $8.28 billion against $3.89 billion, mainly for global AI and operational infrastructure and factory expansion. For Q2 alone the Q2 2026 Update reports operating cash flow of 4,697 against 2,540, capital expenditures of 5,789 against 2,394 and free cash flow, Tesla's non-GAAP measure, of negative 1,092 against positive 146. Source: 10-Q: Item 2 MD&A – Liquidity and Capital Resources; 10-Q: Consolidated Statements of Cash Flows; 8-K Ex. 99.1: Financial Summary

The 10-Q says Tesla currently expects capital expenditures in excess of $25 billion in 2026, driven by AI initiatives including investments in compute infrastructure and data centers, the expansion and ramp of its manufacturing and R&D production lines and facilities, and growth in its fleet of company-operated AI-enabled assets and its retail, service and charging footprint. It adds that changes in trade policy may necessitate adjustments to project timelines. It says periods of heightened capital expenditures “will necessitate additional funding beyond our operating cash flow,” that it intends to maintain “a strong balance sheet and sufficient liquidity, which may include additional funding,” and that it may raise additional capital or seek alternative financing, including drawdowns on existing or new debt facilities. This is the company's own statement, not a forecast by StrongBuyAnalytics. Source: 10-Q: Item 2 MD&A – Management Opportunities, Challenges and Uncertainties and 2026 Outlook: Cash Flow and Capital Expenditure Trends; 10-Q: Item 2 MD&A – Liquidity and Capital Resources; 10-Q: Item 2 MD&A – Overview

Debt and finance leases were 1,418 current and 7,924 non-current at June 30, 2026 (1,640 and 6,736 at December 31, 2025). The 10-Q puts outstanding indebtedness at $9.08 billion in aggregate principal amount, of which $1.35 billion is current, and unused committed credit at $5.00 billion. In Q2 2026 Tesla issued $348 million of energy asset-backed notes (net proceeds $344 million). It also has an uncommitted $1.50 billion Warehouse Agreement, entered into in the first quarter of 2026, with no borrowings outstanding at June 30, 2026. The 10-Q attributes the change in first-half financing cash flow primarily to a $1.63 billion increase in proceeds from issuances of debt and a $207 million decrease in repayments of debt. Source: 10-Q: Note 8 – Debt; 10-Q: Item 2 MD&A – Liquidity and Capital Resources; 10-Q: Consolidated Balance Sheets

In March 2026 Tesla invested $2.00 billion in SpaceX common stock (formerly a preferred share investment in xAI), an ownership interest of less than 1%. Because Tesla's CEO also serves as SpaceX's CEO, Tesla is presumed to have significant influence, and it elected the fair value option. The investment is carried within other non-current assets (9,453 against 5,045 at December 31, 2025) at $3,007 million, a Level 2 measurement, after a $238 million discount for lack of marketability due to regulatory restrictions expiring in September 2026. Tesla recorded a $1.00 billion net gain on it in Q2 2026. The 10-Q adds that Tesla is subject to customary sales restrictions in connection with the SpaceX initial public offering that expire in December 2026. Source: 10-Q: Note 13 – Related Party Transactions; 10-Q: Note 1 – Summary of Significant Accounting Policies; 10-Q: Note 2 – Fair Value of Financial Instruments

Inventory was 13,752 at June 30, 2026 against 12,392 at December 31, 2025: automotive 9,637 (9,678) and energy generation and storage 4,115 (2,714). Accounts receivable, net were 4,087 against 4,576, and property, plant and equipment, net rose to 47,255 from 40,643. Source: 10-Q: Note 14 – Segment Reporting and Information about Geographic Areas; 10-Q: Consolidated Balance Sheets

Quarterly cash flow

USD millions. Q2 2026 = three months ended June 30, 2026; Q2 2025 = three months ended June 30, 2025. The 10-Q presents six-month cash flows only, so these three-month figures come from the Q2 2026 Update, which Tesla labels unaudited. Capital expenditures are shown as a positive amount of cash spent; Tesla presents them inclusive of purchases of energy generation and storage systems. Free cash flow is Tesla's non-GAAP measure: operating cash flow less capital expenditures.

Source: 8-K Ex. 99.1: Financial Summary; 8-K Ex. 99.1: Reconciliation of GAAP to Non–GAAP Financial Information

Balance sheet and funding

GAAP, USD millions, at June 30, 2026 compared with December 31, 2025 (the prior fiscal year-end, not the same quarter a year earlier). Cash, cash equivalents and short-term investments is the sum of the two reported lines above it, calculated by StrongBuyAnalytics. Other non-current assets include the SpaceX equity investment.

Source: 10-Q: Consolidated Balance Sheets; 10-Q: Item 2 MD&A – Liquidity and Capital Resources

Litigation, regulatory, trade and execution risks the filing describes

Employment and governance cases. Note 11 says Delaware derivative suits against current and former directors were dismissed on April 13, 2026 and that plaintiffs appealed to the Delaware Supreme Court in May 2026. It says the California Civil Rights Department's case alleging systemic race discrimination, hostile work environment and pay equity claims had its first trial phase set for September 21, 2026, and that an EEOC suit asserting race harassment and retaliation is in discovery with no trial date set. Tesla says it intends to defend itself vigorously, cannot predict the outcome or impact and is unable to reasonably estimate the possible loss or range of loss, if any, unless noted. Source: 10-Q: Note 11 – Commitments and Contingencies

Product and securities litigation. Note 11 says a limited class of California consumers was certified on August 18, 2025 in a driver-assistance class action, that the Ninth Circuit granted Tesla's petition to appeal on December 18, 2025, that the district court stayed the case, and that oral argument was set for August 31, 2026. A securities class action in the U.S. District Court for the Western District of Texas alleges misrepresentations about Autopilot, FSD (Supervised) and Robotaxi; Tesla moved to dismiss the amended complaint on April 20, 2026. A new proposed consumer class action over driver-assistance statements was filed on June 4, 2026. In Benavides, a jury awarded $129 million in compensatory damages, finding the driver 67% at fault and Tesla 33% at fault, and $200 million in punitive damages; the court denied Tesla's post-trial motions on February 19, 2026, Tesla filed its opening brief in the Eleventh Circuit on July 2, 2026, and it has recorded an immaterial accrual. The 10-Q says an unfavorable outcome in some or all of these proceedings could have a material adverse impact on results of operations or cash flows for a particular period. Source: 10-Q: Note 11 – Commitments and Contingencies

Government information requests. The 10-Q says Tesla regularly receives requests for information, including subpoenas, from regulators and authorities such as the National Highway Traffic Safety Administration, the National Transportation Safety Board, the SEC and the Department of Justice, on topics including vehicle functionality, vehicle incidents, Autopilot, FSD Capability and Robotaxi, compliance, finance and data privacy. It says that to its knowledge no government agency in any ongoing investigation has concluded that any wrongdoing occurred, that it cannot predict the outcome or impact, and that an enforcement action could have a material adverse impact on its business, results of operations, prospects, cash flows, financial position or brand. Source: 10-Q: Note 11 – Commitments and Contingencies

Trade policy and tariffs. The 10-Q says rapidly evolving trade and fiscal policy and geopolitical conflicts pose risks to Tesla's global supply chain and cost structure that could have a meaningfully adverse impact on demand and profitability, and that “The current tariff regime will have a relatively larger impact on our energy generation and storage business compared to our automotive business.” Note 11 says that after the U.S. Supreme Court's February 2026 ruling invalidating certain tariffs imposed under the International Emergency Economic Powers Act, Tesla may be eligible for a refund of tariffs paid, but because recoverability and timing are uncertain it recognizes no receivable, and that refunds could reduce revenue for certain energy storage customers to whom it owes a contractual obligation. Source: 10-Q: Item 2 MD&A – Overview; 10-Q: Note 11 – Commitments and Contingencies

Production, demand and supply. The 10-Q says Tesla's manufacturing plans, which include the start of Cybercab production and ramps across new battery and material factories in the first half of 2026, are subject to uncertainties inherent in establishing and ramping manufacturing operations, including industry-wide component constraints and labor shortages. It describes the automotive industry as cyclical and sensitive to shifting consumer trends, geopolitical conflicts and political and regulatory uncertainty, compounded by inflationary pressures, rising energy prices, interest rate fluctuations and the liquidity of enterprise customers, and says suppliers' liquidity could reduce Tesla's access to components or result in unfavorable changes to cost. For energy storage it says changes in government and economic incentives or tariffs may affect sales, cost structure and competition, and gives import tariffs by the U.S. government as one example of something that could significantly increase battery cell expenses. Source: 10-Q: Item 2 MD&A – Management Opportunities, Challenges and Uncertainties and 2026 Outlook; 10-Q: Item 2 MD&A – Management Opportunities, Challenges and Uncertainties and 2026 Outlook: Energy Generation and Storage Demand, Production and Deployment

What the next filing could clarify

• How energy generation and storage gross margin, which was 20.4% in Q2 2026 against 30.3%, moves in the next 10-Q, and what the filing says drives the change.
• How capital expenditures, which the Q2 2026 Update puts at $5,789 million for the quarter, compare with the more than $25 billion the 10-Q says Tesla currently expects for 2026, and whether the next 10-Q changes that statement.
• How the next 10-Q reports the SpaceX equity investment, which had a fair value of $3,007 million at June 30, 2026, once the sales restrictions the 10-Q says expire in September and December 2026 have passed, and how much of any change is recorded in other income, net.
• What the next 10-Q says about the Benavides appeal in the Eleventh Circuit, the first phase of the California Civil Rights Department trial that the 10-Q says was set for September 21, 2026, and the Ninth Circuit appeal in the driver-assistance class action.
• When Tesla files its Form 10-Q for the quarter ending September 30, 2026. A press release furnished with a Form 8-K on October 2, 2026 says Tesla will post its third-quarter 2026 results after market close on October 21, 2026.

Not covered on this page

• Tesla's outlook, in the Q2 2026 Update, and anything said on its results call. This page uses only the 10-Q and the financial and operating tables in the Q2 2026 Update.
• The two later Form 8-K filings and Tesla's 2025 Form 10-K and Form 10-K/A, all listed below. The 10-Q's Part II, Item 1A refers to the risk factors in the 10-K, which this page did not read. Nothing from the later filings is summarized except the October 21, 2026 results date under what to watch.
• Valuation, peers and the share price. The score above is a separate fixed screen.

Sources and filing identifiers

Every figure above comes from the documents below, filed with the U.S. Securities and Exchange Commission (SEC). Accession numbers identify each filing.

• 10-Q — Tesla Form 10-Q for the quarter ended June 30, 2026. Period ended June 30, 2026. Filed July 23, 2026; accepted by EDGAR July 23, 2026, 01:02 UTC. Accession number 0001628280-26-049270. Open the document · Filing index
• 8-K Ex. 99.1 — Tesla Q2 2026 Update (Exhibit 99.1 to Form 8-K). Period ended June 30, 2026. Filed July 22, 2026; accepted by EDGAR July 22, 2026, 20:35 UTC. Accession number 0001628280-26-049213. Open the document · Filing index

Later filings, listed by identifier only. These were filed after the documents above and are not summarized on this page.

• Form 8-K filed September 29, 2026, Items 1.01, 1.02, 2.03 and 9.01 (entry into and termination of material definitive agreements, creation of a direct financial obligation, and financial statements and exhibits). Accession number 0001628280-26-063820. Filing index
• Form 8-K filed October 2, 2026, Items 2.02 and 9.01 (results of operations and financial condition, and financial statements and exhibits). Accession number 0001628280-26-064366. Filing index

Filings this page did not read. They exist, but their text was not used for the analysis above.

• Form 10-K filed January 29, 2026: Annual report for the year ended December 31, 2025. Accession number 0001628280-26-003952. Filing index
• Form 10-K/A filed April 30, 2026: Amendment to the annual report for the year ended December 31, 2025. Accession number 0001104659-26-053166. Filing index

About this analysis

• Prepared by StrongBuyAnalytics with AI assistance from the filings listed above. Figures were transcribed from those documents.
• This analysis has not been reviewed by a human editor.
• Content last changed October 4, 2026. This is the date the analysis was last edited, not the date this page was loaded.
• October 4, 2026: First published from the Q2 2026 Form 10-Q and the Q2 2026 Update. Figures were transcribed from the cited documents and cross-checked where both report the same measure.
• This is educational information about a company’s disclosures. It is not investment advice and does not forecast results.