Tesla's third-quarter operating income fell 56% from a year earlier and free cash flow declined to $1.531 billion from $3.990 billion, while revenue was little changed.
Tesla released its results in a Third Quarter 2026 Update attached to a Form 8-K filed Wednesday with the Securities and Exchange Commission. Operating income was $718 million, compared with $1.624 billion. Revenue was $28.046 billion, against $28.095 billion a year earlier.
Net income attributable to common stockholders came to $787 million, down from $1.373 billion. Diluted earnings per share fell to 22 cents from 39 cents.
Tesla attributed some revenue pressure to lower vehicle average selling prices, fewer deliveries and reduced regulatory-credit revenue. Energy generation and storage revenue was $2.881 billion, compared with $3.415 billion; the company linked part of the decline to customer refunds related to tariffs. Services and other revenue, automotive ancillary sales and favorable currency movements partly offset the decreases.
Operating expenses climbed to $4.776 billion from $3.430 billion, as Tesla cited higher selling, general and administrative costs alongside research spending on Super Intelligence (SI) and other projects and stock-based compensation that included the 2025 CEO Performance Award.
Vehicle deliveries declined 2% to 486,532, even as production increased 4% to 464,391. Tesla said battery availability constrained its ability to raise vehicle output and that it was working to secure future supply.
Free cash flow was $1.531 billion, compared with $3.990 billion a year earlier. At quarter-end, cash, cash equivalents and short-term investments totaled $45.447 billion, up $1.9 billion from the prior quarter. Tesla said positive free cash flow was the main reason for the increase.
Tesla said it intends to use its existing factories more fully and retain liquidity for product development, capacity growth and other expenses.
