Tesla reported record second-quarter deliveries of 480,126 vehicles, lifting revenue 26 per cent to $28.2 billion, but adjusted net income fell 17 per cent to $1.2 billion, well short of Wall Street’s expectation of $1.95 billion. The electric-vehicle maker’s automotive margin, excluding regulatory credits, came in at 16.3 per cent, below analysts’ forecast of 18.7 per cent, while its overall operating margin fell to 1.4 per cent from 4.1 per cent a year earlier. Revenue from regulatory credits fell sharply to $146 million from $439 million a year earlier, following the Trump administration’s rollback of climate regulations. Tesla more than doubled capital expenditure from a year earlier, with spending rising 142 per cent to $5.79 billion in the second quarter, as chief executive Elon Musk commits billions to a pivot into artificial intelligence, autonomous vehicles, semiconductors and humanoid robots. Tesla shares fell more than 2 per cent in after-hours trading after the results.