Tesla's third-quarter profit fell sharply as the company poured money into artificial intelligence, humanoid robots and self-driving taxis, according to results released after the US market close on Wednesday, 21 October 2026.
The numbers
| Measure (Q3 2026) | Result | Comparison |
|---|---|---|
| Revenue | $28.05 billion | Flat year on year; in line with ~$28.06 billion expected |
| Adjusted earnings per share | $0.48 | $0.45 expected |
| Net profit (GAAP) | $787 million | Down about 43% |
| Operating income | $718 million | Down 56%; 2.6% margin |
| Gross margin | 19.6% | Up from 18.0% |
| Deliveries | 486,532 | Down 2.1%, but above 461,974 expected |
| R&D spending | $2.76 billion | Up 69% |
| Capital spending | $4.73 billion | More than double a year earlier |
| Energy storage deployed | 13.7 GWh | About 15.9 GWh expected |
Figures are from Electrek and AFP.
Betting on AI and autonomy
The fall in profit reflects Tesla's shift from a carmaker to what Elon Musk describes as an AI and robotics company. Research and development spending rose 69%, and capital spending more than doubled. Active Full Self-Driving (FSD) subscriptions reached 1.74 million, up 67%, and Tesla's robotaxis have driven nearly 2 million unsupervised miles. Its purpose-built Cybercab has joined its robotaxi fleet in Austin, Texas, according to Electrek.
Musk also talked up Terafab, a chip factory Tesla is building in Austin with SpaceX, saying it "will be the most valuable building in the world," AFP reported.
Weak spots
Tesla's shareholder letter said "battery availability continued to be the limiting factor" on vehicle volumes. Energy storage deployments missed forecasts, and energy revenue fell 16%. Reports differed on whether Tesla changed its capital spending guidance for 2026.
Merger talk
The results came a day after SpaceX said it and Tesla had formed special committees to explore a merger. CFRA analyst Garrett Nelson told AFP that "Tesla as we know it today may not exist in six to 12 months." Read more in our report on SpaceX's results and the merger committees.
Market reaction
Tesla shares rose at first in after-hours trading, then turned lower and were down about 3.3% by early Thursday, GMT, according to AFP.
This article is for information only and is not investment advice.
