TradingKey – On July 22, Tesla (TSLA) announced a significant increase in vehicle sales for the second quarter of 2026, but the company reported a substantial drop in profitability. Almost half a million vehicles (480,126) were sold across the globe, a 25% increase from the previous year. Revenue from sales reached a new high of $28.24 Billion. The company also reported a year over year increase of 50% in services revenue, with energy-storage deployments reaching a total of 13.5 GWh.

The increase in sales did not correlate with an increase in profit. Operating income fell 57% to $398 million, leading to an operating margin of 1.4% and a 16.8% and 16.3% gross margin and automotive gross margin (excluding regulatory credits),…