Tesla has finalized the acquisition of an undisclosed AI hardware company for approximately $2 billion, as confirmed in its 2026 second-quarter 10-Q filing on July 24 local time. The purchase price was set at $1.95 billion, paid entirely in Tesla common stock and stock-based compensation. Most of the price was structured as contingent consideration, with only $222 million recognized as intangible assets such as patents and development technology. The remaining $1.73 billion will be paid based on whether key personnel remain employed and whether the acquired technology meets performance targets. Tesla first mentioned the acquisition in its first-quarter earnings disclosure, signing an agreement of up to $2 billion with about $1.8 billion tied to performance conditions. The second-quarter filing confirmed the transaction closed at $1.95 billion. Tesla did not disclose the company name, technology details, or key personnel. Regarding accounting, Tesla stated it did not recognize stock-based compensation expense related to performance-based compensation in the second quarter because it determined it is not probable that the performance conditions will be achieved.