Tesla Q3 Revenue Holds Steady as Operating Income Falls 56%

Tesla reported nearly flat third-quarter revenue but a 56% year-over-year drop in operating income, as the automaker’s cash balance grew despite lower deliveries and constraints on vehicle production. Revenue for the quarter ended in 2026 was $28.046 billion, compared with $28.095 billion a year earlier. Operating income fell to $718 million. Tesla reported gross profit of $5.494 billion, up from $5.054 billion in the same quarter of 2025, while operating expenses rose to $4.776 billion from $3.430 billion. The company generated $6.3 billion in operating cash flow and $1.5 billion in free cash flow. Cash and short-term investments reached $45.4 billion, an increase of $1.9 billion from the previous quarter. Tesla had reported negative free cash flow in the second quarter, when capital expenditures were $5.79 billion. Tesla produced 464,391 vehicles and delivered 486,532 during the third quarter. Deliveries were down about 2% year over year. The company said battery availability constraints partly limited growth in vehicle volume. Model 3 and Model Y accounted for 478,237 deliveries, while other models accounted for 8,295. The results also showed growth in Tesla’s energy and...