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Business · Corporate earnings · published 2026-10-22 · via Sharper Trades

Tesla’s Q3 Margin Gains Face Scrutiny Over AI Costs and Reduced Capex Plans

Image via Sharper Trades
Image via Sharper Trades

Tesla reported flat third-quarter revenue at $28.05 billion, while adjusted earnings of $0.48 per share beat the $0.45 consensus. Operating profit fell 56% to $718 million, missing expectations, even as automotive gross margin excluding credits improved to 18.1% and deliveries slipped 2%. The company cut its 2026 capital-spending outlook and is weighing a possible SpaceX merger, leaving investors focused on the cost and timing of its AI and robotics plans.

Expanded Detail

EXPANDED:

Tesla’s Q3 2026 revenue was $28.05 billion, nearly flat year over year, and adjusted EPS of $0.48 beat the $0.45 consensus. Operating profit fell 56% to $718 million, far below the roughly $1.4 billion expected. Vehicle gross margin before regulatory credits improved to 18.1% from 16.3%, aided by regional sales mix.

Deliveries slipped 2% to 486,532 units as battery supply limited output, but the vehicle backlog reached a four-year high and

Expanded detail and Context are AI-generated analysis; the linked article remains the authoritative source.
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This summary is Al-enhanced to contain extended analysis and broader social context. The original is {NAME); the linked article is the authoritative source. Original headline: “Tesla’s Profit Decline and Lower Spending Outlook Put AI Ambitions to the Test.” Browse more stories.