Tesla (TSLA) releases Q3 2026 financial results: margins rebound, profit still falls

According to Electrek, Tesla's Q3 2026 revenue was flat at $28.05 billion, while non-GAAP earnings per share fell 4% to $0.48 despite beating estimates. GAAP net income dropped 43% to $787 million. Gross margin improved to 19.6%, but operating income fell 56% to $718 million as operating expenses rose 39%, with research and development up 69% on Super Intelligence, Optimus, and Cybercab.

Auto gross margin excluding credits rose to 18.1%, though credit revenue fell to $113 million. Energy deployments grew 10% to 13.7 GWh, but revenue dropped 16% to $2.88 billion due to tariff refunds. Services revenue rose 33% to a record $734 million gross profit. Tesla blamed battery limits for a 2% delivery decline and noted its largest backlog in four years. Capex doubled to $4.73 billion, free cash flow was $1.53 billion, and nine-month capex of $13.01 billion is half the $25 billion target. FSD subscriptions reached 1.74 million, Robotaxi miles neared two million. Earnings call at 5:30 p.m. ET.

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Tesla (TSLA) releases Q3 2026 financial results: margins rebound, profit still falls — Electrek