TSLA · 10-Q · 2026Q2 · Full report

Research & Development Increase

Tesla, Inc. · 2026-07-23 · Importance 78 · Surprise 74

R&D expense increased $782 million (49%) to $2.37 billion in the quarter and increased $1.32 billion (44%) year‑to‑date to $4.32 billion, driven primarily by AI and other program costs as Tesla expands its product roadmap. Stock‑based compensation accounted for $189 million of the quarterly increase and $334 million of the year‑to‑date increase. R&D as a percentage of revenue rose to 8% for the quarter and to 9% year‑to‑date (from 7% prior-year periods), reflecting management’s heavy investments in AI, autonomy and Optimus/robotics. These increases are intentional and are expected to negatively impact near‑term profitability while supporting long‑term product and software initiatives.