Tesla Q3 net profit falls 43% to $787 million as revenue stays flat
In short
Tesla reported third-quarter net profit of $787 million, down 43% from a year earlier, on revenue of about $28 billion that was roughly flat. Xinhua reported that operating profit fell 56% and vehicle deliveries fell about 2% to 486,532. Tesla attributed the lower operating profit mainly to higher AI and other R&D spending and higher equity incentive costs.
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Tesla reported third-quarter 2026 results showing net profit attributable to shareholders of $787 million, down 43% from a year earlier. IT Home, 36Kr and Xinhua all gave the same profit figure and described revenue as roughly flat. [ 1 , 2 , 3 ]
Xinhua, writing from San Francisco, said Tesla released the report on the 21st. Operating revenue for the quarter to 30 September was $28.05 billion, against $28.1 billion a year earlier, a decline of 0.2%. 36Kr put revenue at $28.046 billion, also down 0.2%, while IT Home gave $28.004 billion and called it basically flat. [ 1 , 2 , 3 ]
Xinhua reported that operating profit fell 56%, from $1.62 billion a year earlier to $718 million, and the operating margin fell from 5.8% to 2.6%. Tesla said the fall in operating profit was mainly due to higher operating expenses linked to AI and other R&D projects, and to higher equity incentive costs. [ 3 ]
On vehicles, Xinhua reported that global deliveries in the quarter were 486,532, about 2% below the 497,099 delivered a year earlier. Production was 464,391, up 4% year on year. [ 3 ]
IT Home listed further figures from the report. Gross profit was $5.494 billion, up 8.7%, and gross margin was 19.6%, up 1.6 percentage points. Operating cash flow was $6.263 billion and free cash flow was $1.53 billion. Diluted earnings per share were $0.22, down 44%. IT Home said Tesla's fiscal year runs from January to December 2026. [ 1 ]
Looking ahead, Xinhua said Tesla would work to raise factory capacity utilisation while continuing to invest in autonomous driving, robotics, AI infrastructure and energy storage. [ 3 ]
Why it matters
The results show Tesla's profit falling sharply while sales stayed level, with the company pointing to spending on AI and R&D. Tesla said it will keep investing in autonomous driving, robotics, AI infrastructure and energy storage.
Key facts
- Tesla's third-quarter net profit attributable to shareholders was $787 million, down 43% year on year. [ 1 , 2 , 3 ]
- Quarterly revenue was about $28.0 billion, roughly flat (down 0.2% by 36Kr and Xinhua). [ 1 , 2 , 3 ]
- Operating profit fell 56%, from $1.62 billion to $718 million; operating margin fell from 5.8% to 2.6%. [ 3 ]
- Global vehicle deliveries were 486,532, down about 2% from 497,099 a year earlier. [ 3 ]
- Vehicle production was 464,391, up 4% year on year. [ 3 ]
- Diluted earnings per share were $0.22, down 44% year on year. [ 1 ]
Confirmed by several sources
- Tesla's third-quarter net profit was $787 million, down 43% year on year. [ 1 , 2 , 3 ]
- Tesla's third-quarter revenue was roughly flat year on year, at about $28.0 billion. [ 1 , 2 , 3 ]
- Operating profit fell 56% to $718 million, and deliveries fell about 2% to 486,532, according to Xinhua's report of the results. [ 3 ]
Still unclear
- The exact revenue figure differs between outlets. IT Home gives $28.004 billion, 36Kr $28.046 billion and Xinhua $28.05 billion.
- Whether deliveries rose or fell in the quarter. Xinhua reports deliveries down about 2% year on year, while an AI-generated section of the IT Home article says deliveries hit a quarterly record.
- Operating cash flow. IT Home's results list gives $6.263 billion, but its AI-generated section gives $6.226 billion.