AI-generated illustration

Tesla reported that its net profit dropped 43 percent year over year in the third quarter of 2026, falling to 787 million dollars. Revenue was unchanged from the same period last year at 28 billion dollars, while the company's deliveries slipped despite higher vehicle production.

The electric vehicle maker said both revenue and earnings exceeded market expectations. Earnings per share fell to 22 cents from 39 cents a year earlier.

Automotive revenue and earnings

Tesla released its results for the July to September period of 2026. Group revenue came in flat against the same quarter a year earlier at 28 billion dollars, while automotive revenue declined 3 percent to 20.6 billion dollars.

Net profit fell 43 percent to 787 million dollars, down from 1.4 billion dollars in the comparable period last year. Earnings per share dropped to 22 cents from 39 cents. The company said both revenue and profit came in above market forecasts.

Production rises as deliveries slip

Tesla produced 464,391 vehicles worldwide in the third quarter of 2026 and delivered 486,532 vehicles. Output rose 4 percent year on year, while the number of cars delivered fell 2 percent.

Self-driving adoption and product launches

The company said adoption of its supervised Full Self-Driving (FSD) system in North America surpassed 75 percent for new vehicle deliveries. Tesla said FSD is lifting demand in the markets where it is offered and that talks with regulators are continuing to secure approval elsewhere.

Tesla also noted that it began a robotaxi service in Austin on September 3 using Cybercab vehicles and unveiled the next-generation Roadster on October 15.

Battery supply and investment

The company identified battery supply as the main constraint on vehicle production volumes during the quarter, while reporting significant progress in securing future supply. Tesla said it continues to invest in the future across its business lines, including artificial intelligence, robotics and energy, through research and development and capital spending.

Key takeaways

• Tesla's net profit fell 43 percent to 787 million dollars in the third quarter of 2026.
• Revenue was flat at 28 billion dollars and automotive revenue dropped 3 percent to 20.6 billion dollars.
• The company produced 464,391 vehicles and delivered 486,532, with production up 4 percent and deliveries down 2 percent.
• Battery supply was the main limit on production volumes, the company said.