Quick Read – Tesla missed Q2 EPS by 40% as free cash flow went negative; GM beat estimates for the fifth straight quarter and raised full-year guidance. – Trading at a P/E of 344 versus GM’s 29, Tesla needs robotaxi and Optimus to deliver while operating margin sits at just…
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Tesla (NASDAQ: TSLA) and General Motors (NYSE: GM) reported Q2 2026 results within a day of each other. Tesla posted record deliveries of 480,126 vehicles but missed on earnings. GM raised full-year guidance for the second time in 2026 on the back of truck and SUV demand.
Record Deliveries for Tesla, Record Cash for GM Tesla’s top line looked healthy. Revenue rose 25.5% year over year to $28.24 billion, and Services & Other jumped 50% to $4.58 billion at a record 14% gross margin. Under the surface, though, operating margin collapsed to 1.4% as operating expenses surged 47% on AI infrastructure, R&D, and stock-based comp tied to the 2025 CEO Performance Award.