Tesla profits drop 43% in Q3

According to Ars Technica, Tesla's net profit fell 43 percent year over year to $787 million in the third quarter of 2026. Revenue was nearly flat at $28 billion, with automotive revenue down 3 percent to $20.6 billion and energy generation and storage revenue dropping 16 percent to $2.9 billion. Services and other revenue grew by a third to $4.6 billion.

Operating expenses rose 39 percent to $4.8 billion, cutting the operating margin to 2.6 percent from 5.8 percent a year earlier. Capital expenditures more than doubled to $4.7 billion and free cash flow fell 62 percent to $1.5 billion. Regulatory credit revenue declined to $113 million from $417 million. The company attributed the profit decline to lower average selling prices, fewer vehicle deliveries, reduced credit revenue, the energy storage slowdown, and a sharp increase in operating expenses driven partly by AI hardware spending and executive compensation.

Source

Tesla profits drop 43% in Q3 — Ars Technica