Tesla, Inc. (NASDAQ:TSLA) reported record revenue but weaker profits and ballooning capex as it advances Cybercab production, Robotaxi rollouts and Starlink-linked compute plans, while facing an NHTSA suspension probe, China-unit separation rumors and heavy short-seller activity.

Previous Week Recap

  • NHTSA Probes Tesla Front Suspension: NHTSA opened a preliminary probe into ~1.2 million Tesla (TSLA) vehicles over a possible front suspension defect that may cause a suspension part to detach, per safety reports.
  • Tesla Expects Capex Surpass 25B: Tesla (TSLA) says 2026 capital expenditures will exceed $25 billion and expects capex to rise further over the next two to three years, per its Q2 2026 filing.
  • Tesla Revenue Rise, Profit Drop: Tesla (TSLA) posted record quarterly revenue but much weaker profits: operating margin fell over 60% year‑over‑year, free cash flow turned negative, net income lifted by a one‑time SpaceX gain.
  • Tesla Starts Cybercab Production: Tesla (TSLA) started production of the Cybercab — a fully driverless vehicle. Company hasn’t disclosed technical specs, safety validation results, or a regulatory approval timeline for deployment.
  • Tesla China Q2 Revenue And Exports: Tesla's China unit made ~$4.68B in Q2 (≈17% of sales). Shanghai Gigafactory capacity >950k cars, was major export hub and supplied over half global deliveries in 2025; local sales fell 9% H1 2026.
  • Tesla Robotaxi Miami Rollout: Tesla (TSLA) launched Robotaxi service in Miami using Model Y with Full Self-Driving in west and central areas. Q2 deliveries hit a record 480,126 vehicles; shares rose ~3% after the Miami rollout.
  • Short Sellers Profit From Tesla: Short sellers booked about $9.1 billion in year-to-date mark-to-market gains on Tesla (TSLA) in 2026, making it the top profitable short by realized P&L among equities tracked.
  • China Unit Spinoff Reports Denied: Reports said Tesla prepared options for separating its China unit—spinoff, sale or closure—linked to China operations, Gigafactory Shanghai production and local sourcing; Musk denied the reports.
  • Tesla Shares Outstanding Rise: Tesla (TSLA) shares outstanding rose to 3.95B from ~3.2B a year ago; $1T market cap now requires about $253 per share.
  • Starlink Connects Cybercab; AI Plots: Tesla (TSLA): Starlink will provide Cybercab connectivity for Robotaxis. Tesla and SpaceX are developing Digital Optimus and Megapod compute systems to link Tesla AI hardware with edge processors.

This is an AI-generated summary and may contain inaccuracies. Please verify any important information with the original sources.