Overview
- Tesla reported quarterly revenue of $28.2 billion driven by a record 480,126 vehicle deliveries and more than $100 billion in trailing‑12‑month sales.
- Operating income plunged 57% to $398 million, cutting the operating margin to 1.4% from 4.1% a year earlier.
- Free cash flow turned negative for the quarter as operating expenses rose, with the company increasing spending on ambitious AI and R&D projects while earning less from regulatory credits and seeing lower average vehicle selling prices.
- Shares fell about 14% in trading after the results, erasing a large portion of market value as investors judged the quarter short of expectations.
- The report sharpens investor focus on Tesla’s capital needs for projects like advanced software and robotaxi efforts and makes future margins, cash generation, and any guidance on funding the next phase of growth the key things to watch.