Tesla · Elon Musk · Ars Technica
Tesla profits drop 43% in Q3
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Tesla published its third-quarter 2026 financial results this afternoon.
Key facts
- What’s more, capital expenditures were up by 110 percent to $4.7 billion, and free cash flow was down 62 percent to $1.5 billion
- Tesla can no longer rely on selling regulatory credits to other automakers: these fell to $113 million this quarter, down from $417 million in Q3 2025
- Tesla brought in $28 billion in revenue in Q3, almost the same as in 2025
- Automotive revenues were $20.6 billion, a 3 percent decrease year over year
Summary
Automotive revenues were $20.6 billion, a 3 percent decrease year over year. But the company—like the rest of them—has seen its expenses go up. Tesla can no longer rely on selling regulatory credits to other automakers: these fell to $113 million this quarter, down from $417 million in Q3 2025. Tesla’s letter to investors says its flat revenues were due to lower average selling prices, selling fewer cars, not receiving as much in credits, and also the decline of its energy storage business.