Tesla profits drop 43% in Q3

Tesla’s third-quarter 2026 net profit fell 43 per cent year on year to $787 million, despite revenue holding at about $28 billion. The results show how higher costs and weaker income from cars, energy products and regulatory credits have squeezed profitability.

Automotive revenue declined 3 per cent to $20.6 billion, while solar and storage revenue fell 16 per cent to $2.9 billion; services and other revenue rose by a third to $4.6 billion. Operating expenses increased 39 per cent to $4.8 billion, cutting the operating margin to 2.6 per cent from 5.8 per cent a year earlier. Capital spending more than doubled to $4.7 billion, free cash flow dropped 62 per cent to $1.5 billion, and regulatory credit revenue fell to $113 million from $417 million.