Tesla reports US$787 million in Q3 GAAP net income, down 43% from a year earlier
Tesla reported third-quarter 2026 GAAP net income attributable to common stockholders of US$787 million, down 43% from a year earlier, while revenue was nearly unchanged at US$28.046 billion. The U.S. automaker’s October 21 quarterly update labels its financial summary unaudited and shows higher operating expenses alongside a lower operating margin.
News date: 2026-10-21 · Checked: 2026-10-22 (Asia/Bangkok)
Tesla reported third-quarter 2026 GAAP net income attributable to common stockholders of US$787 million, down 43% from a year earlier, while revenue was nearly unchanged at US$28.046 billion. The U.S. automaker’s October 21 quarterly update labels its financial summary unaudited and shows higher operating expenses alongside a lower operating margin.
Three key points
- Q3 revenue was US$28.046 billion, compared with US$28.095 billion in the same quarter of 2025.
- GAAP net income attributable to common stockholders fell 43% to US$787 million; diluted GAAP earnings were US$0.22 per share.
- Operating income fell 56% to US$718 million, with operating margin at 2.6%.
Operating costs rose while the revenue mix shifted
The company’s financial table shows operating expenses of US$4.776 billion, up 39% year over year. Operating margin was 2.6%, compared with 5.8% a year earlier. Total gross profit nevertheless rose 9% to US$5.494 billion, illustrating why gross profit and income after operating expenses should not be treated as the same measure.
Automotive revenue was US$20.560 billion, down 3%, while energy generation and storage revenue was US$2.881 billion, down 16%. Services and other revenue rose 33% to US$4.605 billion. Those are consolidated company figures, not sales totals limited to the United States.
Adjusted earnings and cash flow tell different parts of the report
Tesla separately reported non-GAAP net income attributable to common stockholders of US$1.697 billion and non-GAAP diluted earnings of US$0.48 per share. These adjusted measures are distinct from the US$787 million and US$0.22 GAAP figures. All financial amounts in this article are in U.S. dollars and come from Tesla’s unaudited quarterly materials.
Operating cash flow was US$6.263 billion and capital expenditure was US$4.732 billion, leaving reported free cash flow of US$1.531 billion. Free cash flow was down 62% year over year. The company defines that measure as operating cash flow less capital expenditure; it is not the same as net income.
The quarterly update is listed on Tesla’s investor-relations calendar with an October 21 earnings date. The factory photograph accompanying this report was taken in Fremont, California, in 2011 and does not show the factory’s current production setup or the vehicles produced during this quarter.
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