We continue to expect that CapEx for this year will be more than $25 billion. As previously guided, our free cash flow ended up being negative for the quarter. Note that we are in a big investment cycle and expect our operating expenses largely driven by R&D to continue to grow in 2026 and beyond. Additionally, we had charges related to litigation expenses in the quarter. We continue to grow the Tesla Robotaxi fleet and have expanded to a total of seven markets in the U.S. First, there was a warranty true-up in the quarter of about $240 million related to certain vendor cell issues for our legacy deployments. In Q2, we deployed 13.5 gigawatt hour of energy storage, a 53% sequential increase and the second largest quarter for energy business. Commodity price increases and interest rate changes all continue to add to our costs.
When I look ahead at what's the limiting factor for Tesla, Inc. growth if you go three or four years out, I think it actually is chip production. When we do training, it's a combination of the AI4 chips and NVIDIA hardware. We already use the AI4 chips in our data centers. We will actually use the AI5 chips in our data centers. In terms of selling it outside of Tesla, Inc., we first need to make sure we have enough chips for our vehicle production, all of our Optimus production. I feel pretty good about our chip strategy right now.
Unlike under other spanian casino slots PPP models such as BOT-Toll and BOT-Annuity, a pre-specified proportion of construction payments based on achievement of physical progress is made to the concessionaire in 10 equal installments, which are indexed to inflation. During this period—other than undertaking the (design and) construction work—the concessionaire is required to partly finance the works as stipulated in the agreement. The authority is also required to appoint an independent engineer to administer the concession agreement. Under this agreement, the authority awards the concessionaire the concession, including its exclusive right, license, and authority to construct, operate, and maintain the “project” during the concession period. The Hybrid Annuity Model (HAM) requires that part of the private sector financing by the concessionaire during the construction phase be paid by the authority during the operation and maintenance (O&M) phase. A high school diploma is typically required, followed by rigorous training to qualify for the role.
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For the Optimus robots to build the hypothetically, an it might not be hypothetical in the future. Thanks so much for taking the question. Our next question comes from Andrew from Morgan Stanley. Initially, obviously, we have over $44 billion of cash and investments on the books. Your third part of your question was, how are we going to fund it? Especially if you have to do a chip fab and we have to do a solar cell manufacturing fab.
We would like to remind folks who use the say platform to please focus these questions on Tesla, Inc. The first question is, today there are approximately 90 million cars sold globally each year. As always, we will start with questions from say.com. Now we're going to head over to investor questions. It is important to note that beginning this quarter, we are transitioning fully to a subscription-based model for FSD. FSD adoption continued to improve in the quarter, reaching nearly 1,100,000 paid customers globally. These are just cars with no people in them and no one following the car in Austin.
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Thank you for taking my question. Our next question is going to come from George at Canaccord. Optimus won't even be able to just sit there without an AI chip. It's not like at least the cars we can put steering wheels and pedals in. This is really existential for Tesla, Inc. because Optimus is completely useless without an AI chip. So that puts us in a pretty good position for scaling.
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This was the result of high deployments in all regions and continued strength in demand for both MegaPack and Powerwall. On the energy front, we achieved yet another record in terms of gross profit for the quarter and ended the year with nearly $12.8 billion in revenue, a 26.6% year-over-year growth. While our teams have been creative in trying to resolve the situation by now putting 4,680 cells in nonstructural packs, we continue to iterate improving things from here on. Our biggest constraint globally continues to be on the battery pack front. As we look to 2026, with the progress that has been made with autonomy, our focus is on ramping production at all our factories. Q was an interesting quarter in a couple of respects.
Operation Period Phase of the agreement starts on the date on which the completion certificate—or the provisional certificate—is issued to the concessionaire. The concessionaire is entitled to commence the work under the agreement on the “appointed date,” which is broadly similar to the “commencement date” under FIDIC contract forms. During phase 1 of the agreement (development period), both parties are required to satisfy their respective conditions precedent. This will enable the concessionaire to undertake and perform the obligations and exercise the rights of the winning bidder. The envelopes containing technical bids are evaluated first to ensure that bidders meet required qualifications—including technical and financial capacity requirements—before evaluation of the financial bids. Additionally, payments for O&M are made during the operation period based on the quoted bid price for O&M, adjusted for inflation.
Major investments in batteries and the entire supply chain of batteries. I think all these investments make a lot of sense. As we increase vehicle autonomy and begin to produce Optimus robots at scale, we are making very big investments. Open to other ideas, but that sounds like the best future you could possibly imagine. Making sure that the environment is great, nature is great, and people can have whatever they want, which seems like probably the best future. So I have updated the Tesla, Inc. mission to amazing abundance, and this is intended to send a message of optimism about the future. Cost basis and return based on previous market day close.

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