Tesla’s spending rises dramatically as the production schedule for the Cybercab, Semi, and Megapack slips away

Tesla no longer plans to reach “volume production” of three of its newest products — the Cybercab, the Tesla Semi, and the Megapack 3 commercial energy storage solution — in 2026, according to Tesla. Second quarter shareholder letter Published Wednesday. The company also removed language from its first-quarter letter about its Optimus robot reaching “volume production.”

The company said Wednesday that it is trying to ramp up battery production, specifically around the company’s 4,680 cells, in order to begin building the Cybercab and Tesla Semi at scale. He did not give a reason for delaying production of the new Megapack size, but Tesla CEO Elon Musk warned of Optimus’ challenges.

“This will be the most difficult product to scale to manufacture that we’ve ever made at Tesla, because everything about the robot is new,” Musk said of Optimus in a conference call on Wednesday.

Tesla began manufacturing its first Cybercabs at its Austin, Texas, factory earlier this year, but said in the letter that it is still building manufacturing lines for the Semi and Optimus. The company had said as recently as January that the Cybercab, Semi and Megapack 3 would reach “volume production” this year.

The withdrawal comes as the company pours money into next-generation products as it attempts to transform from an electric car maker into an artificial intelligence and robotics company. Tesla’s results, which showed net income falling 5% year-over-year to $1.1 billion, capital expenditures doubling, and negative free cash flow, were supported slightly by higher revenue.

However, this increase in revenue was not enough to offset the cost of the business and push Tesla to develop and launch new products, which prompted Tesla CFO Vaibhav Taneja He said previously It will result in negative cash flow for the remainder of the year.

The company reported revenues of $28.2 billion, up 26% from the $22.5 billion it generated in the second quarter of 2025. Tesla’s revenues also grew in the second quarter from the previous quarter’s revenues of $22.38 billion.

The bulk of its revenue came from the sale and leasing of its electric vehicles — and those results improved significantly in the quarter.

The company announced revenues from cars amounting to $20.5 billion in the second quarter, compared to $16.6 billion in the same period last year. Tesla delivered More than 480,000 vehicles In the second quarter, an increase of more than 120,000 over the first quarter.

This was Tesla’s best overall sales result since the third quarter of last year, when it delivered nearly 500,000 cars. The increase was driven by record sales in several markets outside the United States, including South Korea, Australia, Colombia, Japan, Taiwan, Thailand, Portugal, Philippines, Chile, Slovenia and Lithuania, the company said in its shareholder letter.

Tesla’s revenue results improved in the second quarter from a year ago when the company struggled with a combination of factors Electric vehicle sales declineLower average selling prices, lower cash from regulatory appropriations, and lower solar and power revenues.

Energy storage and solar sales also proved notable, improving 13% to $3.1 billion. Subscriptions for Tesla’s advanced driver assistance system, known as Full Self-Driving (supervised), continue to rise. The company announced 1.48 million subscriptions, an increase of 56% over the same period last year.

However, Tesla’s bottom line declined as it poured money into new products and saw its gross profit margins shrink.

Tesla reported net income of $1.1 billion, down 5% from the same period last year. Meanwhile, operating expenses swelled 47% to $4.3 billion. Meanwhile, Tesla had negative free cash flow of $1 billion in the second quarter, a stark change from the $1.44 billion of positive free cash flow it reported last quarter and the $146 million it had in the same period last year.

The company’s operating income was $398 million, down 57% from the $932 million it reported in the same period last year.

A year ago, Tesla described the second quarter of 2025 as a “turning point” in the company’s history and the beginning of its transition from a company that sells electric cars, solar energy and energy storage to a leader in “artificial intelligence, robotics and related services.”

That shift is still underway, and Musk has said the company will boost spending to achieve its goal. Tesla said its capital expenditures It will be $25 billion In 2026, about three times what it has spent historically.

This spring, the company ended production of its flagship Model S sedan and Model It is also offering Tesla Robotaxi service to new cities, albeit with a limited number of vehicles. The company is still seeking to sell owners on a fully autonomous (supervised) driving system, and eventually make this product capable enough to handle all types of driving without the need for a human.

This story has been updated with information from Tesla’s earnings call.