Tesla Q3 Profit Slides 43% Despite Revenue Beat and Rebound in Deliveries
WHO:
Ars Technica - Tesla is the company discussed.
IJR - Tesla reported the quarterly results.
WHAT:
Yahoo Finance - Tesla reported adjusted EBITDA of $3.90 billion, compared with the $3.66 billion estimate.
Yahoo Finance - Tesla reported free cash flow of $1.53 billion, versus an estimated negative $4.92 billion, and capital expenditures of $4.732 billion, below the $7.96 billion estimate.
Yahoo Finance - Tesla reduced its full-year capital expenditure guidance to $20 billion from $25 billion.
Yahoo Finance - Tesla said its Optimus robot began production at its Fremont factory and that the current manufacturing process is suitable for a commercial product.
Yahoo Finance - Tesla said active Full Self-Driving subscriptions reached 1.74 million and it planned to reach 400 megawatts of AI training compute by year-end.
Yahoo Finance - Elon Musk said the Cybercab fleet in Austin had grown tenfold.
Ars Technica - Tesla’s profits dropped 43% in the third quarter.
Ars Technica - Tesla’s energy storage business shrank in the quarter.
IJR - Tesla reported revenue of $28.05 billion, slightly above forecasts.
IJR - Vehicle deliveries rebounded and topped expectations, while falling about 2% from a year earlier.
IJR - Adjusted earnings per share beat estimates.
IJR - Automotive revenue declined year over year.
WHERE:
Yahoo Finance - Tesla began Optimus production at its Fremont factory; Musk said the Cybercab fleet had grown tenfold in Austin.
WHY:
Yahoo Finance - CFO Vaibhav Taneja said the lower capital expenditure outlook reflected “managing our capital deployment efficiently” and a plan to fund spending primarily from operating cash flows.
IJR - Heavy spending on AI and robotaxis weighed on profits.
IJR - Growth in energy storage and a rebound in vehicle deliveries lifted sales.
HOW:
IJR - Revenue growth was supported by vehicle deliveries and energy storage, despite lower automotive revenue and reduced deliveries compared with a year earlier.
(UPDATED October 22, 2026 02:16 UTC)
Tesla delivered a mixed quarter, with revenue of $28.05 billion slightly above forecasts, but profits falling 43% from a year earlier. Adjusted earnings per share and adjusted EBITDA beat estimates, with EBITDA reaching $3.90 billion. Free cash flow came in at $1.53 billion, far above expectations for a loss, while capital spending was also below forecasts. Tesla lowered its full-year capital expenditure outlook to $20 billion from $25 billion, saying it plans to manage spending efficiently and fund it primarily through operating cash flow. Vehicle deliveries rebounded and topped expectations, though they remained about 2% below last year, and automotive revenue declined. Tesla said its energy storage business shrank during the quarter. The company also said Optimus production has begun in Fremont, while active Full Self-Driving subscriptions reached 1.74 million. Elon Musk said the Cybercab fleet in Austin had grown tenfold.
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(UPDATED October 22, 2026 00:10 UTC)
Tesla’s profit fell 43% in the third quarter, as heavy spending on artificial intelligence and robotaxis weighed on the company’s results. Revenue reached $28.05 billion, slightly above forecasts, while adjusted earnings per share also beat estimates. Vehicle deliveries rebounded and topped expectations, though they were about 2% lower than a year earlier. Automotive revenue declined year over year, reflecting the softer performance in Tesla’s core vehicle business. Sales were supported by the rebound in deliveries and growth in energy storage, but that business also shrank during the quarter. The mixed results show revenue holding up even as profits dropped and automotive revenue weakened. Tesla’s spending on new technology and robotaxis added pressure to the bottom line.