Close Menu
  • News
  • Featured
  • Electric Cars
  • Luxury Cars
  • Reviews
  • Advice

Subscribe to Updates

Get the latest creative news from Motor Fortune about Electric Cars, Luxury Cars, design and More.

What's Hot

Google’s Gemini AI Assistant Now Works On Apple CarPlay

November 12, 2026

Tesla confirms rare delivery of 50 Semi trucks in Chicago

November 12, 2026

Tesla’s Cheapest Cybertruck Ever Is An RC Racer That Goes 37 MPH

November 12, 2026
Facebook X (Twitter) Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Facebook X (Twitter) Instagram
Motors MachineMotors Machine
  • News
  • Featured
  • Electric Cars
  • Luxury Cars
  • Reviews
  • Advice
Motors MachineMotors Machine
Electric car

Tesla (TSLA) Q3 2026 earnings preview: flat revenue, falling profits

SofiaBy SofiaOctober 20, 2026No Comments6 Mins Read
Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit Email
Share
Facebook Twitter LinkedIn Pinterest Email


Tesla (TSLA) montreal

Tesla reports its third-quarter 2026 financial results tomorrow, October 21, after the market closes. The earnings call follows at 5:30 p.m. ET.

Wall Street expects revenue to come in flat and earnings per share to drop 10% from a year ago, even though Tesla just beat its own delivery consensus by more than 24,000 vehicles.

Tesla Q3 2026 deliveries and energy deployment

We already have the volume numbers. Tesla delivered 486,532 vehicles in Q3, down 2.1% from its all-time record of 497,099 in Q3 2025, but well above the 461,974 consensus Tesla compiled from 24 analysts.

It built only 464,391 vehicles during the quarter. So Tesla delivered 22,141 more cars than it produced, the second quarter in a row it has worked down inventory after building roughly 50,000 excess vehicles in Q1.

Advertisement – scroll for more content

It’s still a two-car company. Model 3 and Model Y made up 478,237 of those deliveries, while “other models” (Cybertruck, Semi and what’s left of Model S and X) fell 48% year-over-year to 8,295 units.

Energy storage was the weak spot. Tesla deployed 13.7 GWh, up 9.6% from 12.5 GWh a year ago, but well short of the roughly 15.9 GWh analysts expected and below the 14.2 GWh record it set in Q4 2025.

Tesla Q3 2026 revenue

The Wall Street consensus calls for $28.06 billion in revenue, with the Estimize crowd a bit more bullish at $28.36 billion. Either way, that’s flat against the $28.1 billion Tesla reported in Q3 2025. Wall Street estimates range from $25.1 billion to $30.6 billion.

Tesla Q3 2026 revenue estimates chart from Estimize
Wall Street and Estimize consensus for Tesla’s Q3 2026 revenue, FQ3 ’26 highlighted. (Source: Estimize)

Flat isn’t as bad as it sounds. Q3 2025 was inflated by US buyers rushing to grab the $7,500 federal tax credit before it expired on September 30, 2025, so matching it without the credit would be a decent result.

But look at the sequential picture. Tesla posted $28.24 billion in revenue in Q2 2026 on 480,126 deliveries and 13.5 GWh of storage. Q3 had more of both, yet Wall Street is modeling slightly less revenue and Estimize only about $120 million more, which means both are baking in lower average selling prices.

Tesla Q3 2026 earnings

Analysts expect non-GAAP earnings per share of $0.45, down 10% from $0.50 in Q3 2025. The Estimize consensus is a little higher at $0.48, and Wall Street estimates range from $0.30 to $0.70.

Tesla Q3 2026 EPS estimates chart from Estimize
Wall Street and Estimize consensus for Tesla’s Q3 2026 EPS, FQ3 ’26 highlighted. (Source: Estimize)

Take that number with a grain of salt. In Q2, Tesla came in at $0.33 against a $0.53 consensus, as its operating margin collapsed to 1.4%. Operating income fell 57% to $398 million while operating expenses jumped 47% to $4.35 billion.

Tesla has now missed the Street’s EPS estimate in two of the last four quarters. And its EPS has declined year-over-year in five of the last seven.

The number we’ll be watching first is automotive gross margin excluding regulatory credits. It dropped to 16.3% in Q2 from 19.2% in Q1, which Tesla blamed on a $230 million warranty true-down and tariff relief that helped Q1 and didn’t repeat.

Regulatory credits won’t bail it out either. They brought in only $146 million in Q2, down 67% from a year earlier, and that pure-profit revenue keeps shrinking now that automakers no longer face federal CAFE penalties.

Then there’s cash. Tesla burned $1.09 billion in free cash flow in Q2 as capital expenditures more than doubled to $5.8 billion, and management guided to more than $25 billion in capex for 2026, with spending weighted to the second half. Another negative free cash flow quarter wouldn’t be a surprise.

Energy is worth a look too. The storage business ran a 20.4% gross margin in Q2, and Tesla says it expects the low-to-mid 20% range long term. With Q3 deployments missing estimates by more than 2 GWh, energy won’t offset much.

Most-upvoted Tesla shareholder questions for Q3 2026

Tesla’s Say Technologies Q&A for the call closes today at 4 p.m. ET. It drew 832 questions from about 2,860 participants representing 3.85 million shares.

That’s more people than last quarter (about 1,710) but less than half the shares, which were 8.6 million in Q2.

Here are the top questions ranked by shares represented:

  • “How does the Cybercab fleet scale past Austin, and what’s the regulatory path outside Texas given NHTSA’s open safety review?” (980 votes, 1.2 million shares)
  • “When can we anticipate FSD unsupervised in customer cars?” (1,200 votes, 1.1 million shares)
  • “When will the CyberCab be available for customer purchase/ownership?” (1,100 votes, 952,900 shares)
  • “What’s the unit economics per paid robotaxi mile, and how does it compare to the thirty-cent target?” (435 votes, 694,900 shares)
  • When HW3 owners will learn whether they get a free hardware upgrade for unsupervised FSD (557 votes, 652,900 shares)
  • “What’s the cost per Optimus unit, and what does the first paying customer look like?” (699 votes, 643,600 shares)

Electrek’s Take

The auto business is flat. Deliveries are up 8.8% year-to-date at 1,324,681, which is a real recovery from two years of decline, but Q3 came in below last year and Tesla still sells almost nothing outside of Model 3 and Model Y.

So the quarter comes down to margins and spending. If auto margins ex-credits hold around 16% and opex stops climbing 40%+ a year, the Q2 miss was a one-off. If not, Tesla is spending more than $25 billion this year on AI, Optimus, Cybercab and chips while its core business barely breaks even at the operating level. That’s a car company funding a very expensive bet out of a shrinking profit pool.

And shareholders mostly don’t care. Look at the questions: Cybercab, FSD, Optimus, HW3. The top question about Tesla’s consumer lineup was a request for a van.

They are completely delusional, waiting for questionable new products to bring in money while watching their cash cows stop growing, something that was completely avoidable if Musk hadn’t bet the whole company on autonomy too early.

If you’re paying attention to what EVs cost to own, home solar is how you get the “fuel” side close to zero. With electricity rates up almost 10% last year and expected to keep climbing, going solar is one of the best ways to protect yourself against rising costs. And with lease and PPA options, you can do it with zero upfront cost and start saving immediately. If you want to find the best deal, check out EnergySage. It’s a free service with hundreds of pre-vetted installers competing for your business, so you save 20 to 30% compared to going it alone. No sales calls until you pick an installer. Get your free quotes here.


Add Electrek as a preferred source on Google
Add Electrek as a preferred source on Google

FTC: We use income earning auto affiliate links. More.



Source link

See also  Here are the EVs made in Mexico and Canada
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Sofia

Related Posts

Google’s Gemini AI Assistant Now Works On Apple CarPlay

November 12, 2026

Tesla confirms rare delivery of 50 Semi trucks in Chicago

November 12, 2026

Tesla’s Cheapest Cybertruck Ever Is An RC Racer That Goes 37 MPH

November 12, 2026

Tesla extends Cybertruck production to late summer 2027 amid fan backlash

November 12, 2026

BYD’s flagship SUV has a wheel problem, and it’s fixing it for free

November 12, 2026

Nvidia’s board meets on Jensen Huang, and Elon Musk already has an answer

November 12, 2026
Leave A Reply Cancel Reply

Top Posts

Google’s Gemini AI Assistant Now Works On Apple CarPlay

November 12, 2026

Tesla confirms rare delivery of 50 Semi trucks in Chicago

November 12, 2026

Tesla’s Cheapest Cybertruck Ever Is An RC Racer That Goes 37 MPH

November 12, 2026
Latest Reviews
Reviews

The Surprising Reason Your Car’s Fuel Economy Changes With The Seasons

By SofiaNovember 12, 2026
Reviews

The Suzuki V-Strom Built For Every Kind Of Adventure

By SofiaNovember 11, 2026
Reviews

The Suzuki That Punches Harder Than Anything At Its Price

By SofiaNovember 10, 2026

Subscribe to Updates

Get the latest creative news from Motor Fortune about Electric Cars, Luxury Cars, design and More.

Most Popular

VW And Skoda EV Owners Have Waited Years For Battery Preconditioning. It's Finally Coming

November 7, 2026

One-pedal driving in EVs isn’t efficient, says Porsche

February 21, 2023

BMW files patent for grilles that integrate headlights

February 1, 2023
Subscribe

Subscribe to Updates

Get the latest creative news from Motor Fortune about Electric Cars, Luxury Cars, design and More.

Facebook X (Twitter) Instagram Pinterest YouTube
  • Contact
  • Privacy Policy
  • Terms & Conditions
© 2026 Almaville Media.

Type above and press Enter to search. Press Esc to cancel.