Tesla reported third-quarter 2026 total revenue of $28.046 billion on 21 October, almost unchanged from $28.095 billion a year earlier, and GAAP net income attributable to common stockholders of $787 million, down from $1.373 billion. Diluted GAAP earnings per share were $0.22, compared with $0.39, and non-GAAP earnings per share were $0.48, against $0.50. Income from operations fell to $718 million from $1.624 billion, as operating expenses rose to $4.776 billion from $3.430 billion. The company delivered 486,532 vehicles, 2 percent fewer than a year ago, and produced 464,391, which is 4 percent more.
The case for the quarter is that the underlying business improved in several areas. Gross profit rose to $5.494 billion from $5.054 billion, a gain of 160 basis points in gross margin, and non-GAAP net income was $1.697 billion. Services and other revenue grew to $4.605 billion from $3.475 billion, and gross profit from services reached a record $734 million. Active Full Self-Driving subscriptions rose to 1.74 million from 1.04 million a year ago, and energy storage deployments were 13.7 gigawatt-hours, against 12.5 a year earlier, with what Tesla called its highest ever order rate and backlog. The company started Cybercab robotaxi rides in Austin on 3 September, delivered its 10 millionth vehicle, and reported operating cash flow of $6.263 billion and cash and investments of $45.447 billion. Model 3 and Model Y deliveries were 478,237, against 481,166 a year ago, cumulative deliveries reached 10.2 million, and Tesla ended the quarter with 8,904 Supercharger stations and 84,465 connectors, with global inventory at 11 days of supply.
The counter-argument is that profit fell while spending climbed. Operating income dropped 56 percent from a year ago and the operating margin shrank by 322 basis points, and GAAP net income fell 43 percent. Capital expenditures rose to $4.732 billion from $2.248 billion, which cut free cash flow to $1.531 billion from $3.990 billion. Energy generation and storage revenue fell to $2.881 billion from $3.415 billion, even though deployments were higher, and deliveries of models other than the Model 3 and Model Y fell to 8,295 from 15,933. Tesla said battery availability was the limiting factor in raising automotive volumes in the quarter, and that deliveries will depend on demand, supply chain readiness and how many vehicles it keeps for its own robotaxi fleet.
The report matters because Tesla is spending heavily on what it describes as superintelligence, robotics and energy, and the quarter shows how that investment is weighing on near-term profit. Total revenue for the trailing twelve months has stayed above $100 billion for a second quarter, according to the company. A Megafactory in Texas has begun production with a planned capacity of 50 gigawatt-hours, and the company said that it ended the quarter with the largest backlog for its passenger vehicles in four years. Investors will watch whether the larger backlog turns into deliveries once battery supply allows. Adjusted EBITDA was $3.900 billion, down from $4.227 billion, and the number of vehicles on operating lease fell to 133,720 from 167,163.
Tesla held revenue flat but earned less, and spent more on the future. The next quarter will show whether higher capital spending and a bigger backlog translate into volume and margin.