Tesla's third-quarter net profit falls 43% to $787 million

Tesla's net profit for the third quarter fell 43% from the same period last year, to $787 million. The company released its financial results for the July-September 2026 period. In the same quarter of 2025, Tesla had reported net profit of $1.4 billion. Earnings per share dropped from 39 cents to 22 cents.

Revenue was flat year on year at about $28 billion. Automotive revenue fell 3% to $20.6 billion. Electrek reported that total revenue reached $28.05 billion, in line with the market consensus of $28.06 billion. Adjusted (non-GAAP) earnings per share came in at $0.48, above the $0.45 analysts had expected.

Deliveries and production

Tesla produced 464,391 vehicles worldwide in the third quarter and delivered 486,532. Production rose 4%, while deliveries fell 2%. The company said battery supply was the main constraint on increasing output, and it said it had made significant progress in securing batteries for future periods.

Margins, expenses and investment

According to Electrek, the total gross margin rose to 19.6%, up from 18.0% a year earlier. Operating income fell 56% to $718 million, with higher spending on artificial intelligence and the Optimus robot program a major factor. Operating expenses rose 39% to $4.78 billion, and research and development spending climbed 69% to $2.76 billion. Capital expenditure came to $4.73 billion, and free cash flow was $1.53 billion.

Energy storage and generation revenue fell 16% to $2.88 billion. Services and other revenue rose 33% to $4.61 billion.

FSD, robotaxi and Roadster

Tesla said the adoption rate of its Full Self-Driving (Supervised) system exceeded 75% among new vehicle deliveries in North America. The company said it is still in talks with regulators to win approval for the system in other markets. It also noted that it started its robotaxi service in Austin on September 3 using Cybercab vehicles, and that it unveiled the next-generation Roadster on October 15.

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