Tesla, Inc.
TSLA · Nasdaq
Dec 2026
Next quarter
Expected to report Jan 27, 2027 — estimated from last year’s reporting date.
Consensus is $0.24 EPS for Dec 2026 across 10 estimates, ranging $0.10 to $0.79.
TSLA Sep 2026
- 9.09%
- -3.08%
- $0.22
- $0.20
- —
- $28.05B
Reported results
- $28.05B
- 19.59%
- $718.00M
- 2.56%
- $787.00M
- $0.22
Highlights
- Earnings and margin: Q3 revenue was $28.05B, essentially flat year over year and down 0.7% sequentially; GAAP operating income fell 56% year over year to $718M and net income attributable to common stockholders fell 43% to $787M.
- EPS comparison: The supplied consensus comparison reports EPS of $0.20 versus $0.22 expected, a 9.1% miss; Tesla’s release and 10-Q list GAAP diluted EPS of $0.22. Non-GAAP diluted EPS was $0.48.
- Operating costs: Gross profit rose 9% year over year to $5.49B, but operating expenses increased 39% to $4.78B, including R&D up 69% to $2.76B; operating margin was 2.6%, versus 5.8% a year earlier.
- Vehicle volumes: Tesla delivered 486,532 vehicles, down 2% year over year, while production grew 4% to 464,391. Global inventory was 11 days of supply, and cumulative deliveries passed 10 million.
- Services growth: Services and other revenue increased 33% year over year to $4.61B, with gross profit reaching a record $734M, up $86M sequentially.
- Energy storage: Energy generation and storage revenue fell 16% year over year to $2.88B and gross profit fell to $954M from $1.07B, despite a 33.1% segment gross margin. Deployments were 13.7 GWh.
- Autonomy milestones: Active FSD subscriptions rose to 1.74M from 1.48M in Q2. Tesla began deploying Cybercabs in Austin and reported nearly 2 million cumulative unsupervised Robotaxi miles at quarter-end.
- Cash and investment: Operating cash flow was $6.26B and free cash flow $1.53B; cash, cash equivalents and short-term investments increased $1.92B sequentially to $45.45B. Tesla expects 2026 capex above $20B.
Analysis
Tesla’s Q3 was a flat-revenue quarter in which stronger gross profit and cash generation were offset by sharply higher operating costs and lower year-over-year earnings. Revenue of $28.05B was nearly unchanged from $28.10B a year ago and slipped from $28.24B in Q2. GAAP operating income was $718M, up from $398M sequentially but well below $1.62B a year earlier; net income attributable to common stockholders was $787M, down from $1.11B in Q2 and $1.37B in Q3 2025. The supplied consensus comparison shows EPS of $0.20 against $0.22 expected, while Tesla’s release and 10-Q report GAAP diluted EPS of $0.22; non-GAAP diluted EPS was $0.48.
The main pressure was spending on the next phase of the business: operating expenses rose to $4.78B, led by R&D investment in SI and other programs, including Optimus and silicon development, and higher stock-based compensation. Core vehicle deliveries declined 2% year over year, while services expanded and lifted gross profit. Energy revenue fell, partly reflecting tariff-related customer refunds. Tesla highlighted early Robotaxi and Cybercab deployments, new Semi and Optimus production, and continued energy-storage investment. Free cash flow returned to positive territory after Q2’s outflow, but year-to-date capex had more than doubled year over year, and management expects 2026 spending above $20B.
Earnings and margins
- Revenue mix: Automotive revenue was $20.56B, down 3% year over year; energy generation and storage revenue declined 16% to $2.88B. Services and other increased 33% to $4.61B, offsetting much of the weakness elsewhere.
- Gross profit: Total gross profit increased to $5.49B from $5.05B a year earlier, and gross margin expanded to 19.6% from 18.0%. Automotive gross margin improved to 18.5% from 17.0% (18.1% excluding regulatory credits, versus 15.4%).
- Operating leverage: Operating expenses climbed from $3.43B to $4.78B year over year, leaving operating income at $718M versus $1.62B and operating margin at 2.6% versus 5.8%. R&D rose 69% to $2.76B; SG&A rose 29% to $2.02B.
- Earnings adjustments: GAAP net income attributable to common stockholders was $787M; Tesla’s non-GAAP measure was $1.70B, with stock-based compensation among the principal adjustments. The filing reports $1.17B of stock-based compensation expense for the quarter, including $275M tied to the 2025 CEO Performance Award.
Vehicles and services
- Production and deliveries: Production increased 4% year over year to 464,391 vehicles, while deliveries declined 2% to 486,532. Model 3/Y deliveries were 478,237; other-model deliveries were 8,295. Inventory ended at 11 days of supply, compared with 10 a year earlier and 15 in Q2.
- Demand and FSD: Tesla said it ended the quarter with its largest passenger-vehicle backlog in four years and reported 1.74M active FSD subscriptions, up from 1.48M in Q2. FSD was available in nine EU countries after four additional approvals during the quarter.
- Services: Services and other revenue reached $4.61B, up $1.13B year over year; gross profit increased $86M sequentially to a record $734M. The filing attributes revenue growth primarily to used-vehicle sales, maintenance and collision work, and paid Supercharging.
Energy generation and storage
- Quarterly results: Segment revenue declined to $2.88B from $3.42B a year earlier, and gross profit fell to $954M from $1.07B. Segment gross margin nevertheless improved to 33.1% from 31.4%, with lower Megapack unit costs and tariff refunds helping margins.
- Revenue headwinds: Tesla cited tariff-related customer refunds, lower average Megapack selling prices, fewer Powerwall deployments and lower solar retrofit deployments. The filing says $339M of tariff refunds owed to energy-storage customers reduced quarterly revenue.
- Capacity and supply: Storage deployments were 13.7 GWh, compared with 13.5 GWh in Q2 and 12.5 GWh a year earlier. Megafactory Texas began production with planned capacity of 50 GWh; Tesla also shipped its first Megapacks made solely with its Nevada-produced LFP cells. Management reported its highest-ever order rate and backlog.
Robotaxi and new products
- Robotaxi: Cybercab rides began in Austin on September 3, and Tesla reported nearly 2 million cumulative unsupervised Robotaxi miles by quarter-end, an eightfold increase from Q2. The company said Austin service ran from 6 a.m. to midnight and expected fleet growth and software improvements to reduce wait times.
- Semi and Optimus: Tesla began volume production of the Semi on its Nevada high-volume line and started Optimus production on high-volume lines in Fremont. The company described the Optimus units as its first production-quality bots, while noting that hardware and manufacturing processes will continue to be refined.
- Compute and infrastructure: Tesla plans to reach 400 MW of SI training compute by year-end and continued construction of its Austin semiconductor facility, with equipment commissioning planned for 2027. The filing also notes that SI infrastructure investment is a major driver of planned capital spending.
Cash and capital spending
- Quarterly cash generation: Operating cash flow was $6.26B and capex was $4.73B, producing $1.53B of free cash flow after a $1.09B outflow in Q2. Cash, cash equivalents and short-term investments increased $1.92B sequentially to $45.45B.
- Investment pace: Nine-month operating cash flow was $14.90B, versus $10.93B a year earlier; capex was $13.01B, more than double the prior-year $6.13B. Trailing-twelve-month free cash flow declined to $3.30B from $6.83B a year earlier.
- Funding and outlook: Tesla expects 2026 capex to exceed $20B, focused on SI compute and data centers, manufacturing and R&D facilities, and company-operated assets and infrastructure. In September, it put in place $30B of committed credit facilities; all remained unused at quarter-end.
