Tesla posts $28.05 billion Q3 revenue, deliveries rise as AI spend dents profit

The Austin‑based automaker beat Wall Street estimates on revenue and deliveries, but higher AI and robotaxi costs reduced profit margins.

By Felo News Desk · Published Wed, 21 Oct 2026 22:46:38 GMT

Tesla announced third‑quarter revenue of $28.05 billion for the period ending September 30, surpassing the $27.88 billion average forecast compiled by LSEG, according to both Independent and the New York Post.

What happened

The company delivered 486,532 vehicles in the quarter, outpacing analysts’ expectation of roughly 461,100 units. Production was 464,391 vehicles, leaving inventory down by more than 22,000 units for a second consecutive quarter. Energy‑storage sales also grew, contributing to the revenue beat.

What the reports add

The Independent noted that the $28.05 billion figure was a touch below the $28.10 billion recorded in the same quarter a year earlier.
The New York Post reported capital spending of $4.73 billion, well under the $7.5 billion analysts had expected, and free cash flow of $1.53 billion versus an anticipated cash burn of $4.92 billion.
Both outlets highlighted that heavy investment in artificial‑intelligence and robotaxi projects weighed on profit margins.
Tesla’s Cybertruck accounted for only 8,295 deliveries, down from 12,364 in the prior quarter.
Production of the Model S and Model X at Fremont has been halted as those lines are being repurposed for the first large‑scale Optimus robot factory.
The company warned that current tariff policies pose a greater challenge to its energy‑storage business than to its automotive segment.

What was said

“This is definitely kind of a question where I feel like I’m tap‑dancing through a minefield, but I do think there’s a lot of merit to combining the companies,” Musk said during a SpaceX earnings call, as reported by the Independent.

“It’s not a certainty,” Musk added, also cited by the Independent.

How it came about

The earnings release arrived as investors weighed a possible merger between Tesla and SpaceX. Musk confirmed that both companies have set up independent committees to explore a deal, a development noted in the Independent article and echoed in related coverage of the merger talks. Earlier in the month Tesla expanded its Austin Cybercab fleet from fewer than 40 vehicles to over 300, and launched unsupervised robotaxi services in Miami, Orlando and Tampa, underscoring the firm’s push into autonomous‑driving revenue streams.

Key facts

Tesla reported Q3 revenue of $28.05 billion, beating the $27.88 billion LSEG forecast. (independent.co.uk)
Vehicle deliveries totaled 486,532 units, exceeding the ~461,100 estimate. (nypost.com)
Capital expenditure in the quarter was $4.73 billion, below the $7.5 billion expected. (nypost.com)
Free cash flow was $1.53 billion, versus an expected cash burn of $4.92 billion. (nypost.com)
Production was 464,391 vehicles, creating an inventory drawdown of over 22,000 units. (independent.co.uk)