Tesla Misses Earnings While GM Exceeds Expectations in Q2 2026
In their July 24, 2026 earnings reports, Tesla (TSLA) and General Motors (GM) showed divergent performance. Despite record vehicle deliveries of 480,126 units, Tesla missed its non-GAAP EPS estimate by nearly 40%, reporting $0.33 versus an expected $0.5367. Operating margin dropped to just 1.4% due to rising expenses related to AI infrastructure and R&D. Free cash flow turned negative at -$1.09 billion, raising concerns about Tesla's financial sustainability. In contrast, GM reported strong results with adjusted EPS of $3.57, beating estimates for the fifth consecutive quarter. The company raised full-year guidance again in 2026 due to robust demand for trucks and SUVs. Adjusted auto free cash flow increased by 78% to $5.03 billion. GM also announced significant buybacks ($2.8B) and a dividend, signaling financial discipline. The earnings highlight contrasting strategies: Tesla is betting on AI-driven innovation like robotaxi and Optimus while spending heavily, whereas GM focuses on cash generation through its core truck business.