Tesla (NASDAQ:TSLA) Issues Earnings Results, Misses Expectations By $0.17 EPS

Tesla (NASDAQ:TSLA) released its quarterly earnings results on Wednesday. The electric vehicle producer reported $0.33 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.50 by ($0.17), FiscalAI reports. The firm had revenue of $28.24 billion for the quarter, compared to analyst estimates of $26.42 billion. Tesla had a return on equity of 3.88% and a net margin of 3.67%.Tesla’s revenue for the quarter was up 25.5% on a year-over-year basis. During the same period in the prior year, the business earned $0.33 earnings per share.

Here are the key takeaways from Tesla’s conference call:

• Tesla reported record Q2 deliveries and said demand improved globally, with the largest order backlog since 2023 and strong Model Y momentum across multiple markets.
• Management said FSD is becoming a major demand driver, citing nearly 1.5 million paid customers globally and strong attach rates, especially in North America.
• Automotive and energy margins declined in the quarter, with Tesla pointing to the absence of prior-quarter benefits, higher interest-rate subvention costs, commodity inflation, tariffs, and warranty true-ups.
• Tesla said Robotaxi is scaling with an “impeccable” safety record, claiming 380,000+ unsupervised miles across six cities in two states with zero notable incidents.
• The company reiterated a heavy investment cycle, expecting CapEx above $25 billion this year and higher spending over the next few years for Optimus, robotaxi, chips, solar manufacturing, and AI infrastructure.

Tesla Price Performance

Shares of TSLA opened at $319.69 on Friday. Tesla has a 12 month low of $297.82 and a 12 month high of $498.83. The company has a debt-to-equity ratio of 0.09, a current ratio of 2.04 and a quick ratio of 1.62. The stock has a fifty day moving average price of $402.92 and a 200 day moving average price of $403.16. The company has a market cap of $1.20 trillion, a P/E ratio of 296.01, a PEG ratio of 12.55 and a beta of 1.80.

Key Tesla News

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla reported record quarterly revenue of $28.24 billion, up about 26% year over year, helped by strong deliveries and continued growth in services and energy. Tesla Q2 2026 earnings: revenue beats, profit misses estimates
• Positive Sentiment: The company said it is expanding robotaxi and Optimus efforts, which bulls see as long-term growth drivers if Tesla can execute. We have more numbers on Tesla’s Robotaxi progress. Here are the 7 that matter most.
• Neutral Sentiment: The U.S. auto safety regulator denied a petition to investigate Tesla’s door-release design, removing one overhang for now, but the broader safety debate around Tesla’s design choices remains. US auto safety regulator denies petition seeking Tesla door-release defect probe
• Negative Sentiment: Profit missed expectations: Tesla posted adjusted EPS of $0.33 versus estimates near $0.50-$0.51, reinforcing concerns that pricing pressure and rising costs are squeezing margins. Elon Musk’s Tesla posts cash burn as capex surges on AI, robotaxi push
• Negative Sentiment: Tesla also reported negative free cash flow of $1.1 billion as capital spending more than doubled, with management signaling about $25 billion in full-year capex tied to AI, autonomy, batteries, and manufacturing. Tesla sees a $200 billion wipeout as investors pan Musk’s plan to spend ‘as fast as we can’
• Negative Sentiment: Investors are increasingly worried that Tesla’s AI and robotaxi bets are years away from meaningful revenue, while current auto margins weaken and competition in autonomous driving looks stronger than expected. Tesla Trailing Alphabet’s Waymo on Robotaxis Without Safety Monitors

Insider Activity

In other Tesla news, Director Kathleen Wilson-Thompson sold 26,409 shares of the business’s stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $378.11, for a total transaction of $9,985,506.99. Following the completion of the transaction, the director owned 48,399 shares in the company, valued at approximately $18,300,145.89. The trade was a 35.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Taneja sold 3,000 shares of the stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $450.00, for a total value of $1,350,000.00. Following the completion of the transaction, the chief financial officer directly owned 18,106 shares of the company’s stock, valued at approximately $8,147,700. The trade was a 14.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 32,015 shares of company stock valued at $12,383,640 in the last 90 days. Insiders own 19.90% of the company’s stock.

Institutional Investors Weigh In On Tesla

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Sivia Capital Partners LLC boosted its stake in shares of Tesla by 9.1% in the 2nd quarter. Sivia Capital Partners LLC now owns 12,135 shares of the electric vehicle producer’s stock valued at $3,855,000 after purchasing an additional 1,011 shares in the last quarter. Schnieders Capital Management LLC. lifted its holdings in Tesla by 94.2% during the 2nd quarter. Schnieders Capital Management LLC. now owns 9,085 shares of the electric vehicle producer’s stock valued at $2,886,000 after purchasing an additional 4,406 shares during the last quarter. Revolve Wealth Partners LLC boosted its position in Tesla by 21.2% in the fourth quarter. Revolve Wealth Partners LLC now owns 5,317 shares of the electric vehicle producer’s stock valued at $2,147,000 after buying an additional 931 shares in the last quarter. Bison Wealth LLC raised its stake in shares of Tesla by 52.2% in the fourth quarter. Bison Wealth LLC now owns 10,368 shares of the electric vehicle producer’s stock valued at $4,187,000 after acquiring an additional 3,558 shares during the last quarter. Finally, Brighton Jones LLC grew its position in Tesla by 11.8% during the 4th quarter. Brighton Jones LLC now owns 87,929 shares of the electric vehicle producer’s stock worth $35,509,000 after acquiring an additional 9,293 shares during the last quarter. Institutional investors own 66.20% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Canaccord Genuity Group set a $410.00 price objective on shares of Tesla and gave the stock a “buy” rating in a report on Thursday. Piper Sandler reiterated an “overweight” rating on shares of Tesla in a report on Wednesday, June 10th. Evercore raised shares of Tesla from a “hold” rating to an “outperform” rating in a research report on Friday, June 5th. Robert W. Baird reduced their price target on shares of Tesla from $538.00 to $522.00 and set an “outperform” rating on the stock in a research report on Friday, April 24th. Finally, UBS Group set a $460.00 price objective on shares of Tesla in a research note on Thursday. Twenty-one research analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $406.42.

About Tesla

Tesla, Inc (NASDAQ: TSLA) is an American company that designs, manufactures and sells electric vehicles, energy generation and energy storage products. Founded in 2003 by Martin Eberhard and Marc Tarpenning, Tesla grew into a vertically integrated mobility and clean‑energy company with Elon Musk serving as its chief executive officer. The company’s stated mission is to accelerate the world’s transition to sustainable energy, reflected in its combined focus on electric drivetrains, battery technology, renewable energy products and software.

Tesla’s automotive business includes a lineup of battery‑electric vehicles and related services.