Tesla no longer plans to reach “volume production” of three of its newest products (the Cybercab, the Tesla Semi and its Megapack 3 commercial energy storage solution) in 2026, according to a second-quarter shareholder letter released Wednesday. The company also removed language from its first-quarter letter about its Optimus robot reaching “volume production.”

The company said Wednesday that it is looking to ramp up battery production, specifically around the company’s 4680 cell, to begin building Cybercab and Tesla Semi at scale. He did not offer a reason for delaying volume production of the new Megapack, nor did he say if there are delays around Optimus.

Tesla began manufacturing the first production Cybercabs at its Austin, Texas, factory earlier this year, but said in the letter that it is still building the manufacturing lines for the Semi and Optimus. The company had said in January that Cybercab, Semi and Megapack 3 would reach “volume production” this year.

The pullback comes as the company pours money into its next generation of products as it attempts to transition from an electric vehicle maker to an artificial intelligence and robotics company. Tesla’s results, which showed net income fell 5% year over year to $1.1 billion, capital expenditures more than doubling and negative free cash flow, were slightly boosted by an increase in revenue.

The company reported revenue of $28.2 billion, a 26% increase from the $22.5 billion it generated in the second quarter of 2025. Tesla’s second-quarter revenue also grew from $22.38 billion in the previous quarter.

Most of its revenue came from the sale and lease of its electric vehicles, and those results improved significantly this quarter. The company reported automotive revenue of $20.5 billion in the second quarter, compared with $16.6 billion in the same period a year earlier. Tesla delivered more than 480,000 vehicles in the second quarter, an increase of more than 120,000 from the first quarter. It was Tesla’s best result in overall sales since the third quarter of last year, when it delivered nearly 500,000 vehicles.

Tesla’s second-quarter earnings results improved from a year earlier, when the company suffered a combination of falling electric vehicle sales, lower average selling prices, less cash coming from regulatory credits and a drop in solar and energy revenue.

The company’s revenue from energy storage and solar also improved 13% to $3.1 billion.

Still, that revenue increase wasn’t enough to offset the cost of the business and Tesla’s drive to develop and launch new products.

Tesla reported net income of $1.1 billion, a 5% decline from the same period a year earlier. At the same time, its cost of operations soared 47% to $4.3 billion. Meanwhile, Tesla had negative free cash flow of $1 billion in the second quarter, a marked change from the $1.44 billion in positive free cash flow it reported last quarter and the $146 million it had in the same period last year.

The company’s operating income was $398 million, a 57% drop from the $932 million it reported in the same period last year.

A year ago, Tesla called the second quarter of 2025 a “pivotal point” in the company’s history and the beginning of its transition from a company that sells electric vehicles, solar power and energy storage to one that leads in “AI, robotics and related services.”

That transition is still underway. This spring, the company ended production of its flagship Model S sedan and Model It will also bring its Tesla Robotaxi service to new cities, although with a limited number of vehicles. And it’s still pushing to sell owners on its advanced driver-assist system, known as full (supervised) autonomous driving, and eventually make that product capable enough to handle all the driving without the need for a human.