Tesla 8-K

NegativeEarnings

Battery constraints limited vehicle volumes as backlog hit a four-year high; higher expenses drove a 56% Y/Y drop in GAAP operating income.

Filed 2026-10-21 16:41 ET

Summary

Q3 2026 results. Revenue was roughly flat Y/Y at $28.0B, while GAAP operating income fell 56% to $718M. Battery availability continued to limit vehicle volume; Tesla said it ended the quarter with its largest passenger-vehicle backlog in four years.

Key Figures

Metric Q3 2026
Revenue $28.0B, -0.2% Y/Y
Gross margin, GAAP 19.6%, vs 18.0%
Operating income $718M, -56% Y/Y
Net income attributable to common stockholders, GAAP $787M, -43% Y/Y
Net income attributable to common stockholders, non-GAAP $1.70B, -4.1% Y/Y
Diluted EPS attributable to common stockholders, GAAP $0.22, -44% Y/Y
Diluted EPS attributable to common stockholders, non-GAAP $0.48, -4.0% Y/Y
Operating cash flow $6.26B, +0.4% Y/Y
Free cash flow $1.53B, -62% Y/Y
  • Vehicle deliveries were 486,532, down 2% Y/Y; production was 464,391, up 4%. Tesla cited battery availability as a constraint on auto volumes.
  • Operating income was pressured by higher operating expenses, including SI and other R&D, stock-based compensation and selling, general and administrative expense; growth in Services and Other gross profit and improved vehicle mix partly offset the declines.
  • Cash, cash equivalents and short-term investments ended the quarter at $45.4B, up $1.9B Q/Q, primarily from $1.5B of free cash flow.

Guidance

No guidance in this filing.

Investor Takeaways

  • Watch whether battery supply improves enough to support higher vehicle production and factory utilization.
  • Tesla plans to reach 400 MW of SI training compute by year-end and begin commissioning equipment at the Austin Fab in 2027.
  • Tesla expects increased Robotaxi fleet supply and improved orchestration algorithms to reduce Austin wait times.

Was this summary useful?

The summary is written by an AI model reading the filing.

Model 005 · prompt v95 · 2026-10-21 22:40:25Z

Feedback