Tesla sells electric vehicles, battery energy storage systems and services. In the three months to 30 June 2026 its revenue was $28.24 billion, up 26% on a year earlier. Its operating margin, which is the share of revenue left after the costs of running the business, was 1.4% under US Generally Accepted Accounting Principles (GAAP).
This guide shows what each part earns, how many vehicles Tesla delivers and what it has announced since July 2026. The financial figures cover the quarter to 30 June 2026, Tesla's latest reported results when this guide was written on 15 October 2026. Tesla announced on 2 October 2026 that it would report its next quarter on 21 October 2026.
What does Tesla do? Tesla designs, makes and sells electric vehicles and battery storage systems. It also sells services such as paid charging at its Supercharger stations, used vehicles and insurance. Vehicles are its largest source of revenue.
In the three months to 30 June 2026, vehicle sales brought in 70.9% of revenue, energy storage 11.1%, services and other 16.2% and regulatory credits and leasing 1.8%.
Energy storage earned 13.5% of gross profit in the three months to 30 June 2026, against 21.8% a year earlier.
Net income under GAAP in the three months to 30 June 2026 included a $1.00 billion gain on Tesla's stake in SpaceX, a private company. Tesla's non-GAAP measure leaves the gain out.
What Tesla sells and how it earns
Tesla reports two segments. The automotive segment designs, makes, sells and leases electric vehicles. It also sells automotive regulatory credits.
Services and other sits inside the automotive segment. It covers used vehicles, maintenance, paid Supercharging, insurance, parts and merchandise. Paid Supercharging is the fee drivers pay to use Tesla's fast-charging stations.
The energy generation and storage segment sells two battery products. Powerwall is a home battery. Megapack is a battery system for businesses and utilities.
In 2025 Tesla delivered approximately 1.64 million consumer vehicles and deployed 46.7 gigawatt-hours (GWh) of energy storage products. A gigawatt-hour is a unit of stored energy.
Where Tesla's revenue comes from
Source: Tesla quarterly updates, Form 10-Q (SEC); YX Insights
Chart 1 shows revenue by source for five quarters. In the three months to 30 June 2026, vehicle sales brought in $20.01 billion, which is 70.9% of revenue. Energy generation and storage brought in $3.14 billion (11.1%) and services and other $4.58 billion (16.2%).
Regulatory credits and leasing, the rest of the automotive segment, brought in $0.51 billion, or 1.8%. Credits are tradable credits that Tesla earns under emission rules and sells to other regulated companies. They brought in $146 million in that quarter, against $439 million a year earlier.
Against the quarter to 30 June 2025, vehicle sales grew 27%, energy 13% and services and other 50%. The chart labels the three largest bands and each column's total.
Revenue for 2025 was $94.83 billion, down 3% on 2024. By location, the United States brought in 50.2% of it, China 22.1% and all other countries 27.7%.
Where Tesla's gross profit comes from
Gross profit is revenue minus the direct cost of what was sold. Tesla's annual report says its chief executive officer uses gross profit to allocate resources and to assess each segment.
Source: Tesla Form 10-Q and quarterly updates (SEC); YX Insights
Chart 2 splits gross profit between the automotive segment (which includes services and other) and the energy segment. In the three months to 30 June 2026, total gross profit was $4.75 billion. Energy storage earned $0.64 billion of it, which is 13.5%.
In the quarter to 30 June 2025, energy storage earned 21.8% of gross profit. Its GAAP gross margin, which is gross profit as a share of its revenue, fell from 30.3% to 20.4% between those two quarters.
Tesla's update listed higher energy warranty-related charges, meaning repair costs under warranty, from a vendor cell issue among the items that lowered operating income. A vendor cell issue is a problem with a supplier's battery cells. Tesla gave no further detail.
Three columns in chart 2 are hatched because their split between segments is derived, although their totals are reported. Tesla's filing reports segment gross profit for the June 2026 quarter, the June 2025 quarter and the six months to 30 June 2026.
For the third and fourth quarters of 2025 we took energy gross profit as energy revenue less energy cost of revenues. Automotive is total gross profit less that. For the first quarter of 2026 we used this method and also the six-month figure less the June quarter.
The derived energy bar for the first quarter of 2026, $0.95 billion, implies a 39.5% margin, the highest of the five quarters. The two methods give the same figure, which is consistent with Tesla's six-month energy margin of 28.7%. The filing does not discuss that quarter's energy margin.
How many vehicles Tesla delivers
Source: Tesla quarterly updates and 2 October 2026 deliveries release (SEC); YX Insights
Chart 3 shows vehicles delivered each quarter. Tesla delivered 480,126 vehicles in the three months to 30 June 2026, up 25% on a year earlier. Model 3 and Model Y were 97.4% of them.
The orange bar is the quarter to 30 September 2026. It shows deliveries only, because this guide's financial figures stop at 30 June 2026. Tesla says deliveries should not be relied on as an indicator of its quarterly financial results.
How Tesla's profit reads under GAAP and non-GAAP
Operating income under GAAP was $398 million in the June 2026 quarter, a margin of 1.4%. A year earlier it was $923 million, a margin of 4.1%. Operating income fell 57% while quarterly revenue rose 26%.
Operating expenses rose 47% to $4.35 billion. Tesla named artificial intelligence (AI) and other research and development projects and stock-based compensation among the drivers. Stock-based compensation is pay given to employees in shares or share awards.
Net income attributable to common stockholders was $1.114 billion under GAAP. A non-GAAP measure is one that a company adjusts by leaving out certain items. Tesla's non-GAAP net income was $1.153 billion.
The bridge from $1.114 billion to $1.153 billion uses after-tax items. Add $989 million of stock-based compensation and $87 million of losses on digital assets. Subtract a $763 million SpaceX gain and $274 million of certain tax items.
SpaceX is a private company in which Tesla invested $2.00 billion in March 2026. Tesla records the stake at fair value, which is its estimated market value. The June 2026 quarter included a $1.00 billion gain on it, in other income below operating income.
Free cash flow is operating cash flow minus capital expenditures, which are payments for equipment and facilities. Tesla reports it as a non-GAAP measure.
Free cash flow was negative $1.09 billion in the June 2026 quarter. Capital expenditures of $5.79 billion exceeded operating cash flow of $4.70 billion.
Latest developments, with dates
On 22 July 2026 Tesla reported its second quarter. It said that day that Megapack 3 and the Tesla Semi (its electric truck) remained on schedule to start production in 2026. It added that first-generation production lines for its Optimus robot were being installed.
Tesla's report for the three months to 30 June 2026 said it expected capital expenditures above $25 billion in 2026.
On 29 September 2026 Tesla signed three credit agreements totalling $30.0 billion, a term loan and two credit lines it can draw on, repay and draw again. It ended an existing $5.0 billion facility the same day, with no loans outstanding under that facility. Tesla said it did not currently plan to draw on the new agreements in 2026.
On 2 October 2026 Tesla reported its third quarter production, deliveries and deployments. It delivered 486,532 vehicles and deployed 13.7 GWh of storage in the quarter to 30 September 2026, as chart 3 shows.
The chart below includes SPY (the exchange-traded fund, or ETF, that tracks the Standard & Poor's 500, or S&P 500, an index of large US companies).
Source: YX Insights price data
Chart 4 sets Tesla, General Motors and SPY to 100 on 14 October 2021.
General Motors is another US-listed carmaker. By 14 October 2026 Tesla stood at 135, General Motors at 144 and SPY at 174. These are closing prices, adjusted for splits, with dividends not counted.
On 14 October 2026 Tesla closed 25.1% below its highest close of the five years, which was on 16 December 2025. Tesla is one of the Magnificent 7, a nickname for seven large US companies. Our guide to the Magnificent 7 stocks shows how much of the S&P 500 the seven make up.
Across the eight results Tesla reported from October 2024 to July 2026, the median move in its share price by the next close was 4.5%, up or down.
The largest fall was 14.5% after the 22 July 2026 results. The largest rise was 21.9% after the 23 October 2024 results.
Tesla sells vehicles, energy storage and services. Vehicle sales brought in 70.9% of its revenue in the June 2026 quarter.
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Common questions about Tesla
How does Tesla make money?
Tesla makes money mainly by selling electric vehicles. It also sells battery energy storage systems, regulatory credits, paid Supercharging, used vehicles and insurance. In the three months to 30 June 2026, vehicle sales brought in 70.9% of its $28.24 billion of revenue and energy storage 11.1%.
Does Tesla earn more from its automotive business or from energy storage?
The automotive segment earns more. In the three months to 30 June 2026 it earned $4.11 billion of gross profit (including services and other) while energy storage earned $0.64 billion. Energy storage earned 13.5% of gross profit in that quarter and 21.8% a year earlier, so its share moves between periods.
When does Tesla report its next results?
Tesla announced on 2 October 2026 that it would post its third quarter 2026 results after the market close on Wednesday 21 October 2026. Its webcast was set for 4:30 p.m. Central Time, which is 5:30 p.m. Eastern Time. Its latest results when this guide was written covered the quarter to 30 June 2026.
Is Tesla one of the Magnificent 7?
Yes. The Magnificent 7 is a nickname for seven large US companies: Nvidia, Apple, Microsoft, Alphabet, Amazon, Meta Platforms and Tesla. Our guide to the Magnificent 7 stocks shows what each company does and how much of the S&P 500 the seven make up.
What is Tesla's SpaceX investment?
Tesla holds a stake in SpaceX, a private company. In March 2026 Tesla put $2.00 billion into SpaceX common stock, for an ownership interest of less than 1%. Tesla records the stake at fair value, which was $3.01 billion on 30 June 2026. Gains on it sit in other income, below operating income.
DISCLAIMER: This article is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.