Tesla's Q2 FY2026 revenue rose 25.5% to $28.2 billion, but operating income halved as surging R&D and SG&A expenses from AI and autonomous vehicle investments compressed margins.
Revenue
$28.24B
+25.5% YoY
Net Income
$1.11B
-4.9% YoY
EPS (Diluted)
$0.32
-3.0% YoY
Gross Margin
16.8%
-0.4pp YoY
Key risk: Profitability Squeeze from Rising Operating Expenses
R&D and SG&A expenses grew at 49% and 45% respectively, far outpacing revenue growth, causing operating margin to shrink from 4.1% to 1.4%. Continued heavy investment in AI, robotics, and new factories may keep margins under pressure.