Tesla’s autos engine is under strain as Musk pivots beyond cars, shares fall 15% in 2026

Tesla missed profit forecasts and reported negative free cash flow for Q2 2026, despite record vehicle deliveries.

Higher spending on AI and robotics infrastructure drove cash burn, with capex over $25 billion in 2026, nearly triple last year.

Average selling price per Tesla fell to $42,730 from $45,345 due to tougher competition and lower pricing.

Regulatory credit revenue dropped by two-thirds year-over-year to $146 million after a policy change.

Tesla's Full Self-Driving Supervised subscriptions reached 1.5 million active users, up 56% from a year earlier.