# Tesla profits drop 43% in Q3

- URL: https://talkfuse.com/story/tesla-profits-drop-43-in-q3/
- Published: 2026-10-21T21:35:07+00:00
- Updated: 2026-10-21T23:27:12+00:00
- Original publisher: Ars Technica
- Original article: https://arstechnica.com/cars/2026/10/tesla-profits-drop-43-in-q3/
- Topics: Software

## Key points

- Tesla’s Q3 net profit fell 43 per cent to $787 million.
- Revenue was roughly flat at $28 billion.
- Higher costs and weaker credit sales weighed on profits.

## Summary

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.

---
Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.