Tesla is no longer planning to reach ‘volume production’ of three of its newest products – the Cybercab, the Tesla Semi, and its Megapack 3 commercial energy storage solution – in 2026, according to a second-quarter shareholder letter published on Wednesday.
The company also removed language from its first-quarter letter about its Optimus robot reaching ‘volume production.’
Tesla’s attempt to shift from an electric vehicle (EV) maker to an AI and robotics company is driving up spending, and the company is now pouring more money into its next-generation products.
Production Timeline Slips
The company’s production timeline for the Cybercab, Semi, and Megapack 3 has slipped, and it is now focusing on increasing battery production, specifically around the 4680 cell, to start building these products at scale.
Tesla started making the first production Cybercabs at its factory in Austin, Texas, earlier this year, but said in the letter that it’s still building out the 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.
Tesla’s shift from an EV maker to an AI and robotics company is driving up spending, and the company is now pouring more money into its next-generation products.
Increased Spending
Tesla’s capital expenditures will be $25 billion in 2026, about three times more than it historically has spent.
This spring, the company ended production of its flagship Model S sedan and Model X SUV vehicles at its Fremont, California factory to make way for its Optimus humanoid robot.
Tesla is also bringing its Tesla Robotaxi service to new cities, albeit with a limited number of vehicles.
The company is still pushing to sell owners on Full Self-Driving (Supervised), and eventually make that product capable enough to handle all driving without the need of a human.
Revenue Growth
Tesla’s revenue grew 26% year-over-year to $28.2 billion in the second quarter of 2026, compared to $22.5 billion in the same period last year.
The bulk of its revenue came from selling and leasing its EVs, and those results improved significantly this quarter.
Tesla delivered more than 480,000 vehicles in the second quarter, an increase of more than 120,000 from the first quarter.
The increase was driven by record sales in several markets outside of the U.S., including South Korea, Australia, Colombia, Japan, Taiwan, Thailand, Portugal, the Philippines, Chile, Slovenia, and Lithuania.
Tesla’s second-quarter revenue results improved from a year ago when the company suffered from a combination of falling EV sales, lower average selling prices, less cash from regulatory credits, and a drop in solar and energy revenue.
Sales of energy storage and solar also proved to be a standout, improving 13% to $3.1 billion.
And subscriptions to Tesla’s advanced driver assistance system, known as Full Self-Driving (Supervised), continue to rise, with 1.48 million subscriptions, a 56% increase from the same period last year.
Tesla’s bottom line, however, slipped as it poured money into new products.
Tesla reported net income of $1.1 billion, a 5% decrease from the same period a year ago.
At the same time, its operating expenses ballooned by 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 in positive free cash flow it reported last quarter and the $146 million it had in the same period last year.
