Key facts
- Net profit fell 43% to $787 million in Q3 2026.
- Automotive revenue decreased 3% to $20.6 billion.
- Energy storage and solar revenue declined 16% to $2.9 billion.
- Operating expenses increased 39% to $4.8 billion.
- Regulatory credit sales dropped to $113 million from $417 million.
Tesla reported a 43% year-over-year decline in net profit for the third quarter of 2026, with earnings falling to $787 million. Total revenue for the quarter was $28 billion, largely unchanged from the previous year. Automotive revenues saw a 3% decrease to $20.6 billion, while revenue from solar panels and storage batteries dropped 16% to $2.9 billion. Services and other revenues grew by a third to $4.6 billion. Operating expenses increased by 39% to $4.8 billion, reducing the operating margin to 2.6% from 5.8% in Q3 2025. Capital expenditures more than doubled to $4.7 billion, and free cash flow decreased by 62% to $1.5 billion. The company's ability to rely on regulatory credits diminished, with sales falling to $113 million from $417 million in the prior year's quarter, as other automakers increasingly offer their own electric vehicles.