Tesla's third-quarter profit falls 43%
US electric-car maker Tesla reported net profit of $787 million for the third quarter of 2026, down 43% from a year earlier. Revenue was almost unchanged, but expenses rose sharply.
Tesla, the electric-vehicle and energy company, has published its financial results for the third quarter of 2026. Net profit fell to $787 million, which is 43% less than a year earlier. Revenue stayed almost level, so the result shows that rising costs and heavy investment are weighing on the company's earnings.
Revenue
Total revenue for the quarter was $28 billion, roughly the same as in the third quarter of 2025. Automotive revenue came to $20.6 billion, a 3% decrease year over year. Earlier in October, Tesla had already reported its deliveries: it sold fewer cars than a year before, but the figure still beat analyst projections.
Revenue from solar panels and energy-storage batteries fell 16% to $2.9 billion. This line of business had previously been growing. Services and other revenue, which includes parts and the use of Supercharger charging stations, rose by a third to $4.6 billion.
Expenses and cash flow
Operating expenses increased by 39% to $4.8 billion. As a result, the operating margin dropped to 2.6%, compared with 5.8% in the third quarter of 2025. Capital expenditures grew by 110% to $4.7 billion, while free cash flow declined by 62% to $1.5 billion.
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