Tesla Profit Fall
Tesla's revenue rose, but profits dipped as Musk boosted AI and robotics spending.
July 22, 2026 · Updated Jul 22, 7:00pm ET
The VergeTesla’s revenues are bouncing back, but profits are still weak
CNBCTesla misses on earnings, as free cash flow turns negative and margins slide
Washington TimesEarnings at Musk’s car company fall as research spending cuts into profit from selling cars
The GuardianTesla’s profits slide despite growing revenue as it pivots to robotics and AI
ARS TechnicaSales were up at Tesla but so were costs and spending
New York PostTesla profit disappoints as Elon Musk’s AI spending surge leads to cash burn
TechCrunchTesla spending skyrockets as Cybercab, Semi, Megapack production timeline slips
ABC NewsEarnings at Musk's Tesla fall as research spending cuts into profit from selling cars
Associated PressEarnings at Musk's car company fall as research spending cuts into profit from selling cars
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Pano rates the coverage Balanced.
What happened
Tesla said Wednesday that second-quarter net income fell to $1.11 billion, or 32 cents a share, from $1.17 billion, or 33 cents, a year earlier, as higher research and AI spending cut into profit from increased vehicle sales. Adjusted earnings were 33 cents a share, below the 51 cents analysts expected, while revenue of $28.24 billion exceeded the $25.71 billion estimate. Free cash flow turned negative for the first time in more than two years. Tesla also pushed planned volume production of the Cybercab, Semi and Megapack 3 beyond 2026.
