Tesla reported second-quarter revenue of $28.24 billion, a 26% increase from a year earlier, while executives pointed to continued progress toward launching production of the Tesla Semi Class 8 electric truck at the company’s manufacturing facility in Nevada.

Austin, Texas-based Tesla (Nasdaq: TSLA) released its second-quarter results and held a conference call with analysts after the market closed on Wednesday.

The company reported $20.5 billion in automotive revenue for the quarter, delivered a record 480,126 vehicles worldwide and posted diluted earnings per share of 32 cents. Operating income totaled $398 million, with results reflecting increased research and development spending tied to artificial intelligence, robotics, battery manufacturing and commercial vehicle production.

Tesla CEO Elon Musk said the company is entering what executives described as its largest investment cycle. Spending is focused on expanding manufacturing capacity across several business lines, including the Tesla Semi program.

“We have started production with the Tesla semi-truck,” Musk said during Wednesday’s earnings call. He added that Tesla is also ramping battery production, lithium refining, cathode manufacturing and future solar manufacturing capacity.

In its shareholder update, Tesla said the Nevada Tesla Semi factory remains on schedule, with production expected to begin later this year. The company also said increased production of its 4680 battery cells is helping support planned production ramps for both the Cybercab and Tesla Semi programs.

Tesla’s manufacturing update listed the Nevada Semi facility as being in the commissioning phase. The company also said it continues to expand battery manufacturing capacity to support higher vehicle production.

The Semi program is closely tied to Tesla’s battery and manufacturing strategy because Class 8 trucks require large battery packs and are typically used in high-utilization freight operations. For fleet customers evaluating electric heavy-duty trucks, vehicle availability, charging infrastructure, payload needs and route length remain central operating considerations.

Chief Financial Officer Vaibhav Taneja said development costs related to the Semi were among the factors that contributed to higher operating expenses during the quarter.

“The increase came primarily from significant research and development-related activities, including pre-production ramp costs for new products like the semi-truck, Optimus, CyberCab and other AI initiatives,” Taneja said.

Tesla said capital expenditures more than doubled from the previous quarter to $5.8 billion as it expands manufacturing capacity. Management expects capital spending to exceed $25 billion this year and to continue rising over the next several years.

Supply chain expansion

Executives said supply chain constraints remain the main limitation on Tesla’s ability to increase vehicle production going forward.

Taneja said production growth continues to be constrained by battery availability and electronic components, but the company is working to secure strategic supplier agreements to support future growth.

During the analyst Q&A session, Musk pointed to supplier investments that support Tesla’s manufacturing expansion. He cited semiconductor production from Samsung and TSMC, battery investments from Panasonic, and memory supply commitments from Micron.

Those supply relationships are particularly relevant for programs moving from pre-production into commercial manufacturing, where cell availability, power electronics and other components can determine how quickly a factory can progress beyond commissioning.

Tesla Q2 2026 key metrics

Source: Tesla Q2 2026 Shareholder Update.

Tesla’s continued investment in the Semi program reflects growing competition in the Class 8 truck market and the industry’s broader shift toward domestic manufacturing and electrification.