Automobiles
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.
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.
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