Tesla reported a 43% drop in net profit for Q3 2026, falling to $787 million despite beating revenue expectations. The company generated $28 billion in revenue, nearly flat compared to 2025, but automotive sales declined 3% to $20.6 billion. Revenue from solar and storage fell sharply by 16% to $2.9 billion, reversing previous growth trends.
Meanwhile, services and other revenues grew by a third to $4.6 billion. Operating expenses surged 39% to $4.8 billion, compressing the operating margin to just 2.6%, down from 5.8% in Q3 2025. Capital expenditures more than doubled, rising 110% to $4.7 billion, while free cash flow plummeted 62% to $1.5 billion.
The results highlight growing cost pressures and slowing growth across key business segments.
Source: Ars Technica · Summarized by HeadlinesBriefing