Investor's Corner
Tesla Q2 2018 earnings preview: Layoffs, auto revenue, cost of Model 3 ramp
All eyes will be on Tesla’s pace toward profitability on Wednesday, August 1 when the Silicon Valley company, led by CEO Elon Musk, releases its second quarter financial results after the closing bell. With the electric car maker meeting Musk’s self-imposed Model 3 weekly production target for the second quarter practically by the skin of its teeth, there is a good chance that Q2’s financial results will trigger even more volatility in Tesla’s stock (NASDAQ:TSLA). Here then, is a preview of what we can expect for Tesla’s Q2 2018 financial report and earnings call.
Automotive Deliveries and Revenue Impact
Tesla revealed Q2 deliveries totaling 40,740 vehicles, of which 18,440 were Model 3, 10,930 were Model S, and 11,370 were Model X when it released its production and delivery report earlier this month. Based on the company’s figures, the second quarter results are set to highlight the record deliveries for the Model 3, 10,000 more units compared to Q1. Charts displaying these could be viewed below, courtesy of Galileo Russell of YouTube’s HyperChange TV.
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- Tesla’s vehicle deliveries. [Credit: Galileo Russell]
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- Tesla’s Model 3 deliveries. [Credit: Galileo Russell]
Tesla posted revenue of $2.56B in Q1 for vehicle sales, including 8,182 Model 3s that were delivered to customers during the three-month period. Assuming that the additional 10,000 Model 3 delivered in Q2 averaged $55,000 per unit, Tesla could post an additional ~$550 million in earnings from the electric car. Revenue from Tesla’s vehicle leasing business likely remained flat considering that the lending option is not available yet for the Model 3. Service revenue could see a spike in Q2, however, as a result of more Model 3 vehicles being on the road.
The Price of the Model 3 Ramp
Tesla focused largely on the Model 3 ramp during Q2 2018, with the company pulling out all stops to hit its milestone of producing 5,000 Model 3 per week by the end of June. In order to achieve its target production rate, Tesla adopted unorthodox measures such as air-freighting robots and equipment from Europe and setting up an entirely new Model 3 assembly line on the grounds of the Fremont factory. These strategies likely resulted in additional expenses for the company in the second quarter. With the Model 3 ramp as a priority, Tesla’s other sources of income, such as its battery storage and solar business likely remained flat compared to Q1 as a result.
The company’s operational expenditure would likely see a slight bump in the second quarter due to the 9% layoffs that Tesla implemented to organize its workforce, considering that the restructuring included severance pay packages to employees who were terminated. In a video outlining his expectations for Tesla’s Q2 2018 results, the HyperChange TV host noted that he believes Tesla would post an estimated $4B in revenue with losses in the ~$500 million range. That’s a 43% increase in revenue compared to Q2 2017, when Tesla posted earnings of $2.8B, but also double the losses of the company’s losses in 2017’s second quarter.
Looking Past Q2’s Aftermath
Overall, Tesla’s Q2 2018 quarter financial results would likely feature similarities with Q1, in the way that the company would show strong growth but post substantial losses and negative cash flow. Nevertheless, it is pertinent to note that while Q2 2018’s numbers could be discouraging, the quarter could be seen as a turning point for Tesla, especially with regards to its Model 3 ramp. The past quarters, Q2 2018 included, have been focused on bringing the vehicle’s manufacturing up to 5,000 per week, resulting in the company investing heavily in resources to help scale the vehicle’s production.
With the 5,000/week milestone attained and with Tesla now more focused on sustaining its Model 3 production rate, Q3 2018 would most likely feature a pathway to profitability in the form of more encouraging financials than the second quarter. Provided that Tesla adopts a deliberate, realistic plan for the further ramp of the Model 3, the next few quarters could very well prove to be profitable.
Watch Galileo Russell’s take on Tesla’s Q2 2018 financial results in the video below.
Elon Musk
Tesla Semi finally has an FSD timeline and it’s waiting on the Cybercab
Elon Musk told investors Semi self-driving should start working by early 2027, per today’s earnings.
During Wednesday’s’ Tesla Q2 earnings call, an analyst asked Elon Musk when Tesla would look at autonomy for the Semi. His answer set a real timeline for the first time, noting that self-driving on the Tesla Semi is expected to start working “around the end of this year or early next year”.
Musk framed the delay as a matter of priority, not capability. Tesla’s self-driving team is currently focused on Model 3, Model Y, and Cybercab, the vehicles that make up the overwhelming majority of Tesla’s fleet. Since Semi trucks on the road remain a small fraction of that total even after the recent Nevada factory ramp, Musk said it made more sense to keep the software team’s attention on what he called “the march of nines of safety” for the higher volume vehicles first. Autonomous Semi development is “taking a bit of a backseat for the next six months or so,” he said, before adding that it “will definitely be working next year and in time for the scale-up to high production of the Tesla Semi.”
Tesla Semi’s official battery capacity leaked by California regulators
The timeline lines up with what’s already been showing up on public roads. In June, a Tesla Semi was spotted in Sunnyvale wearing a full validation rig, the same rooftop sensor array Tesla mounts on vehicles ahead of an FSD milestone.
A second unit was seen near Fremont days later with a matching camera suite and lens washers. Separately, Tesla analyst Nic Cruz Patane posted video this month of the production Semi’s exterior camera array, ten AI4 based units built directly into the truck rather than added later.
Tesla Semi AI4 cameras. The production version has 10 cameras on its exterior.
These trucks are designed to be autonomous. pic.twitter.com/GH3BamxIBQ
— Nic Cruz Patane (@niccruzpatane) April 14, 2026
Musk also gave the reason autonomy on the Semi matters in the first place, a persistent shortage of qualified truck drivers. “There is a really serious shortage of truckers,” he said on the call, framing a self-driving Semi as important both for addressing that shortage and for improving safety and comfort for the drivers running the truck today.
The timing also tracks with the Semi’s production reality. Tesla’s Q2 shareholder letter, dropped language promising the Semi would reach volume production this year. Musk pointed to 4680 battery cell output as the near-term constraint on Semi and Cybercab production. A software timeline landing in early 2027 gives Tesla’s autonomy team room to work while the hardware ramp catches up behind it.
It’s worth nothing that this isn’t necessarily a promise the Semi ships driverless next year. Musk’s own language, self-driving “working” by early 2027, describes internal validation catching up to hardware already riding on every production truck, not a public unsupervised rollout.
Tesla (NASDAQ: TSLA) reported its earnings for the first quarter of 2026 on Wednesday afternoon. Here’s what the company reported compared to what Wall Street analysts expected.
The earnings results come after Tesla reported a massive beat on vehicle deliveries for the second quarter, delivering 489,126 vehicles and building 451,758 cars during the three-month span.
This was a major shock for those on Wall Street as they anticipated somewhere around 400,000 deliveries for the quarter, and showed Tesla still has plenty of demand for its vehicles around the world and in the U.S. despite losing the $7,500 EV Tax Credit last year.
Tesla Q2 2026 Earnings Results
- Non-GAAP EPS – $0.33 reported vs. $0.53 expected
- Revenues – $28.236 billion reported vs. $26.4 billion expected
- Free Cash Flow- -$1.092B
- Profit -$ 4.751B
Tesla (beat/missed) analyst expectations, so the market response to the company’s quarter is what we will look for next.
Tesla shares closed today down just over 1 percent, trading at $374.01.
In the past, it has been anyone’s guess with what Tesla shares will do after they report earnings. Strong quarters have resulted in sharp drops, while lackluster quarters have seen the stock shoot up considerably.
Tesla will hold its Q2 2026 Earnings Call in about 90 minutes at 5:30 p.m. on the East Coast. Remarks will be made by CEO Elon Musk and other executives, who will shed some light on the investor questions that we covered earlier this week.
You can stream it below. Additionally, we will be doing our Live Blog on X and Facebook.
Q2 2026 Earnings Call https://t.co/zZS6ii2TWK
— Tesla (@Tesla) July 22, 2026
Tesla (NASDAQ: TSLA) will report its earnings for the second quarter of 2026 this evening after market close, and investors and analysts are waiting anxiously to see what the company will report for the second three-month span of the year.
Analysts have already put out their expectations from a financial standpoint for the company’s second quarter, but what’s unknown is what Tesla plans to discuss during the call.
Financial Expectations
Wall Street consensus expectations put Tesla’s Earnings Per Share (EPS) at $0.53, while revenues are expected to come in around $26.4 billion.
This would compare to an EPS of $0.39 and $22.19 billion compared to Tesla’s Q2 2025. Last quarter, EPS came in at $0.41 on $22.387 billion of revenue. Additionally in Q1, Tesla beat analyst expectations, but shares dropped over 3 percent the following trading day.
What We Expect
In terms of discussions, Tesla earnings are pretty sporadic and depend on a handful of things, including current events, investor questions, and more.
Tesla uses a platform called Say to field questions from investors and analysts. These questions are what will be used during the call. Here are the top 5 from the Retail side and top 3 from the Institutional side:
Retail:
“Tesla has missed short-term guidance on robotaxi 3 earnings reports in a row, from 50% coverage of USA by end of 2025 to most recently 7 new cities in 1H26. What is keeping Tesla back from accomplishing these short term goals that they’ve set for themselves?”
“What are the main constraints to expanding robotaxi operations faster, and how do you see that lining up with Cybercab production?”
“What’s the current status of Optimus Gen 3 production ramp, initial deployment in factories, and external sales timeline/volume for 2027? What tasks can we expect the Optimus to perform by end of 2027?”
“To reward long-term Tesla retail shareholders for their loyalty, can you commit to achieving at least half of the goals outlined in your 2025 compensation plan before considering any offers to acquire or merge Tesla?”
“Why has growth of robotaxi vehicles stalled? When will we see cybercab start customer rides?”
Institutional
“Previously, you’ve said Tesla would lead the R&D while SpaceX would lead production for Terafab. Can you provide an update on how that division of responsibilities is evolving, and any additional clarity on the expected capital contributions from Tesla and SpaceX?”
“For autonomous driving, Tesla’s fleet created a huge data advantage by collecting billions of real-world miles. That advantage doesn’t yet exist for Optimus. How should we think about data availability and its impact on Optimus development?”
“Why is it necessary to limit robotaxi operations within specific zones within cities to start? Will every city have to be rolled out this way?”
Tesla will report earnings for Q2 this evening with the Shareholder Deck at 4 p.m. ET, with the call starting around 5:30 p.m. ET.
Tesla Semi finally has an FSD timeline and it’s waiting on the Cybercab
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
