TSLA Tesla 8-K 2026-10-21 slides

Contents

Summary Highlights

Highlights

Summary

In Q3, we maintained strong momentum on many projects spanning Super Intelligence (SI), robotics and renewable energy that will be critical to building a future of Amazing Abundance. Strength in our core business also continued, and we achieved our second consecutive quarter of TTM revenue in excess of $100B.

FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets.

We started providing Robotaxi rides using Cybercabs on September 3 in Austin. Cumulative unsupervised Robotaxi miles grew eightfold quarter over quarter, driven by sustained double-digit weekly growth.

We ended the quarter with the largest backlog for our passenger vehicles in four years. We rolled out the updated Tesla Semi that is produced on our high-volume manufacturing line in Nevada and unveiled the Next Gen Roadster on October 15. While battery availability continued to be the limiting factor in increasing auto volumes in the quarter, we have made additional progress in securing future supply, as we work toward our goal of maximum utilization of our factories.

Demand for our Energy Storage business remained strong in the quarter, with our highest-ever order rate and backlog. Energy storage is the fastest way to add power to the existing grid and is critical to data center uptime. We expect rising data center demand to continue driving demand for our products. Megafactory Texas began production, with planned capacity of 50 GWh. We also advanced LFP supply domestication in the U.S., shipping the first Megapacks built with LFP cells from our factory in Nevada.

We continue to invest in the future through R&D and Capex spend across our businesses, including SI, robotics and energy. Much hard work lies ahead, but we are as optimistic as ever. Thank you to our supporters as we continue to execute on many challenging and important projects.

Footnotes:
¹ Refer to the Reconciliation of GAAP to Non–GAAP Financial Information slide.
² Free cash flow = operating cash flow less capex.
³ Includes cash, cash equivalents and short-term investments.
⁴ Active driver supervision required; does not make the vehicle autonomous.
Note: all information herein refers to the current quarter unless otherwise noted.

FINANCIAL SUMMARY

(Unaudited)
($ in millions, except percentages and per share data)

OPERATIONAL SUMMARY

(Unaudited)

(1) Vehicle production and delivery numbers represent passenger vehicles sold to customers.
(2) In accordance with our 2025 CEO Performance Award, metric includes all new Tesla vehicles delivered to customers plus any unsupervised Robotaxis placed into commercial operation. For further detail see our 2025 Proxy Statement.
(3) In accordance with our 2025 CEO Performance Award, metric includes both upfront payment and monthly subscriptions and excludes free trials. For further detail see our 2025 Proxy Statement.
(4) Beginning in Q4’25, end of quarter operating lease count pertains only to new vehicles. Q3’25 has been adjusted to exclude used vehicles.
(5) Days of supply is calculated by dividing new vehicle ending inventory by the relevant quarter’s deliveries and using 75 trading days (aligned with Automotive News definition).

MANUFACTURING & HARDWARE

Automotive

We achieved record quarterly deliveries in several markets, including Canada, Australia, Japan and Taiwan. Given the strong demand we are seeing across various markets, we remain focused on increasing production across our factories and attained record production at Gigafactory Berlin.

We began volume production of Tesla Semi, our Class 8 heavy-duty truck. The top variant can go 500 miles at full 82,000 lbs gross combination weight while achieving an efficiency of 1.7 kWh/mile. That efficiency allows the Tesla Semi to use a third of the energy used by a comparable diesel truck to haul the same payload. In a transportation market where energy is one of the largest components of total cost per mile, this will provide a meaningful advantage to Tesla Semi operators.

Installed Annual Manufacturing Capacity

Energy Generation and Storage

We began production at Megafactory Texas. Energy storage demand is increasingly aligned with SI infrastructure demand as grid constraints and power availability create more opportunities for Megapack to be deployed. Megapack excels in off-grid and on-grid applications, supplying large data center loads, buffering oscillating demand, helping interconnection grid-compliance and strengthening the grid – all with less local fossil fuel generation.

Robotics

Optimus production began in Fremont on our high-volume lines. The bots coming off this line are the first production-quality bots that we have manufactured. While we will continue to iterate on the hardware and manufacturing process, we have proven that the current manufacturing process for Optimus is suitable for a commercial product.

Installed capacity & current production rates may be limited and there may be limitations discovered as production rates approach capacity. Production rates depend on a variety of factors, including equipment uptime, component supply, downtime related to factory upgrades, regulatory considerations and other factors. Construction includes factory and infrastructure buildout as well as tool installation.

SUPPORTING INFRASTRUCTURE

SI Compute

We plan to reach 400 MW of SI training compute by the end of the year, supporting the development of both vehicle and humanoid robot autonomy software. Additionally, we continued construction for the Austin Fab, where we plan to start commissioning equipment in 2027.

Installed Capacity

Installed capacity ≠ current production rate and there may be limitations discovered as production rates approach capacity. Production rates depend on a variety of factors, including equipment uptime, component supply, downtime related to factory upgrades, regulatory considerations and other factors. Early ramp capacity includes expected capacity. Construction includes factory and infrastructure buildout as well as tool installation.

Battery

We continue to make progress expanding battery manufacturing capacity and securing future supply, even as battery availability remains a limiting factor on the pace of our global vehicle production ramp. Critical projects include vehicle pack capacity in Berlin, cathode material production and lithium refining in Texas and LFP cells in Nevada for our energy storage products. We shipped the first Megapacks comprised solely of our own LFP cells, an important milestone to localizing this important battery type. We continue to increase production of our 4680 cells to support the ramps of both Cybercab and Tesla Semi along with higher Model Y volumes.

Other Supporting Infrastructure

We added over 2,100 net new Supercharging stalls, growing the network by 14% year-over-year. Our Supercharger for Business program also grew to over 600 stalls. These customer-owned chargers allow us to further scale the charging network while ensuring the same performance standards and service standard as Tesla-owned locations. We deployed our first Accordion Supercharger, which is pre-assembled in the factory and cheaper to install. We also deployed the first pre-assembled Megacharger to support the Tesla Semi ramp.

Tesla SI Training Capacity Ramp (MW of Compute)

Y-axis labels: 0, 50, 100, 150, 200, 250, 300, 350, 400, 450.

¹ Excludes 40 MW of other compute not part of Cortex 1 or Cortex 2.

SI & OTHER SERVICES

FSD (Supervised)¹

FSD adoption continued to increase during the quarter, including record net new subscriptions. We also achieved record FSD attach rates in North America, with over 75% of new deliveries including FSD subscriptions. To date, we have received four additional FSD approvals since the end of Q2 (Croatia, Slovenia, Czech Republic and Slovakia) with FSD now available in a total of nine EU countries and used by over 100,000 customers logging more than 160 million kilometers since initial approval.

Chart: Cumulative Miles Driven with FSD (Supervised)¹ (billions)

Robotaxi

We began deployment of Cybercab into our Robotaxi fleet in Austin. We reached nearly two million cumulative unsupervised miles for our Robotaxi service as of the end of the quarter. Operating hours in Austin are now 6am to midnight, and we expect to reduce wait times via increased fleet supply and improvement of Robotaxi orchestration algorithms. Grok is available in Cybercab with access to Grok Bot and Connectors, which allows users to manage their inbox, calendars, files, chats and tasks – all hands free via voice command – making Cybercab a mode of transport, a productivity space and, with our entertainment options, a second living room.

Chart: Cumulative Unsupervised Robotaxi Miles

Automotive Services

Services and Other gross profit grew $86M sequentially to a record $734M, achieving a 15.9% gross margin, with growth driven by charging, insurance and part sales. We continue to prudently manage these supporting business segments to ensure we can improve efficiency without sacrificing customer experience.

¹ Active driver supervision required; does not make the vehicle autonomous.

OUTLOOK

Volume
We are focused on maximum capacity utilization at our factories. Deliveries and deployments will be impacted by aggregate demand for our products, supply chain readiness and allocation decisions between sale to customers and use for our owned and operated fleet.

Cash
We will manage the business such that we ensure a strong balance sheet, maintaining sufficient liquidity to fund our product roadmap, long-term capacity expansion plans – including further vertical integration – and other expenses.

Profit
While we continue to execute on innovations to reduce the cost of manufacturing and operations, over time, we expect our hardware-related profits to be accompanied by an acceleration of SI, software and fleet-based profits.

Product
We continue to evolve and augment our product lineup with a focus on cost, scale and future monetization opportunities via services powered by our SI software. We remain focused on growing our sales volumes through a differentiated and efficiently managed product portfolio, which includes leveraging and optimizing our existing production capacity before building new factories and production lines.

Production has begun for Tesla Semi in Nevada and Optimus in Fremont.

Capacity build-out and ramp related to our multi-year infrastructure initiatives, including SI compute, solar, battery material and semiconductor manufacturing are underway.

FSD (SUPERVISED)¹ – APPROVED IN NINE EUROPEAN COUNTRIES

(1) Active driver supervision required; does not make the vehicle autonomous.

TESLA SEMI – HIGH-VOLUME PRODUCTION LINE

AUSTIN FAB – CONSTRUCTION OF OUR SEMICONDUCTOR MANUFACTURING FACILITY

KEY METRICS QUARTERLY

(Unaudited)

Vehicle Deliveries (millions of units)

Operating Cash Flow ($B) and Free Cash Flow ($B) (1)

Net Income ($B) (2) and Adjusted EBITDA ($B) (2) (3)

Bar values are not printed on the slide.

(1) Beginning in Q1'25, Capital expenditures is presented inclusive of purchases of energy generation and storage systems and all prior periods have been adjusted.

(2) As a result of the adoption of the new crypto assets standard, the previously reported quarterly periods in 2024 have been recast.

(3) Beginning in Q1'25, Adjusted EBITDA (non-GAAP) is presented net of digital assets gains and losses and all prior periods have been adjusted.

KEY METRICS TRAILING 12 MONTHS (TTM)

(Unaudited)

Vehicle Deliveries (millions of units)

Operating Cash Flow ($B) and Free Cash Flow ($B) (1)

Net Income ($B) (2) and Adjusted EBITDA ($B) (2) (3)

(1) Beginning in Q1’25, Capital expenditures is presented inclusive of purchases of energy generation and storage systems and all prior periods have been adjusted.
(2) As a result of the adoption of the new crypto assets standard, the previously reported quarterly periods in 2024 have been recast.
(3) Beginning in Q1’25, Adjusted EBITDA (non-GAAP) is presented net of digital assets gains and losses and all prior periods have been adjusted.

KEY METRICS YEAR-OVER-YEAR FINANCIAL SUMMARY

Revenue

Total quarterly revenue was roughly flat YoY at $28.0B. YoY, revenue was impacted by the following items(1):

• decrease in Energy Generation and Storage, partially due to tariff-related customer refunds
• lower vehicle average selling price (ASP) (excl. FX impact(1)), inclusive of mix impact
• lower regulatory credit revenue
• decrease in vehicle deliveries
• growth in Services and Other
• positive FX impact of $0.3B(1)
• higher automotive ancillary sales, primarily driven by an increase in FSD subscriptions

Profitability

Our quarterly operating income decreased 56% YoY to $0.7B, resulting in a 2.6% operating margin. YoY, operating income was primarily impacted by the following items(1):

• increase in operating expenses driven by SI and other R&D projects, SBC (including 2025 CEO Performance Award) and SG&A
• lower regulatory credit revenue
• lower Energy Generation and Storage gross profit
• growth in Services and Other gross profit
• improved vehicle region and product mix, partially offset by lower vehicle average selling price (ASP) (excl. FX impact(1))
• lower restructuring and other expenses
• higher automotive ancillary sales, primarily driven by an increase in FSD subscriptions
• positive FX impact of $0.1B(1)

Cash

Quarter-end cash, cash equivalents and short-term investments was $45.4B. The sequential increase of $1.9B was primarily a result of positive free cash flow of $1.5B.

(1) Impact is calculated on a constant currency basis. Actuals are compared against current results converted into USD using average exchange rates from Q3’25.

STATEMENT OF OPERATIONS

(Unaudited)
In millions of USD or shares as applicable, except per share data

BALANCE SHEET

(Unaudited)
In millions of USD

(2) Beginning in Q4'25, other non-current assets is presented inclusive of goodwill and intangible assets, net and all prior periods have been adjusted.

Statement of Cash Flows

(Unaudited)
In millions of USD

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

(Unaudited)

In millions of USD or shares as applicable, except per share data

(1) Certain tax items consist of the release of valuation allowances on certain California deferred tax assets in Q2'26 and accruals related to pillar two.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

(Unaudited)

In millions of USD

In millions of USD

In millions of USD

In millions of USD

TTM = Trailing twelve months

(1) Beginning in Q1'25, Capital expenditures is presented inclusive of purchases of energy generation and storage systems and all prior periods have been adjusted.

(2) As a result of the adoption of the new crypto assets standard, the previously reported quarterly periods in 2024 have been recast.

(3) Beginning in Q1'25, Adjusted EBITDA (non-GAAP) is presented net of digital assets gains and losses and all prior periods have been adjusted.

ADDITIONAL INFORMATION

WEBCAST INFORMATION

Tesla will provide a live webcast of its third quarter 2026 financial results conference call beginning at 4:30 p.m. CT on October 21, 2026 at ir.tesla.com. This webcast will also be available for replay for approximately one year thereafter.

CERTAIN TERMS

When used in this update, certain terms have the following meanings. Our vehicle deliveries include only vehicles that have been transferred to end customers with all paperwork correctly completed. Our energy product deployment volume includes both customer units when installed and equipment sales at time of delivery. “Net income attributable to common stockholders (non-GAAP)" is equal to (i) net income attributable to common stockholders before (ii)(a) stock-based compensation expense, net of tax, (b) digital assets unrealized (gain) loss, net of tax, (c) SpaceX equity investment unrealized (gain) loss, net of tax and (d) certain tax items. "Adjusted EBITDA (non-GAAP)" is equal to (i) net income attributable to common stockholders before (ii)(a) interest expense, (b) provision for (benefit from) income taxes, (c) depreciation, amortization and impairment, (d) stock-based compensation expense (e) digital assets unrealized (gain) loss and (f) SpaceX equity investment unrealized (gain) loss. "Free cash flow" is operating cash flow less capital expenditures. Average cost per vehicle is cost of automotive sales divided by new vehicle deliveries (excluding operating leases). “Days sales outstanding” is equal to (i) average accounts receivable, net for the period divided by (ii) total revenues and multiplied by (iii) the number of days in the period. “Days payable outstanding” is equal to (i) average accounts payable for the period divided by (ii) total cost of revenues and multiplied by (iii) the number of days in the period. “Days of supply” is calculated by dividing new car ending inventory by the relevant period's deliveries and using trading days. Constant currency impacts are calculated by comparing actuals against current results converted into USD using average exchange rates from the prior period.

NON-GAAP FINANCIAL INFORMATION

Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis to supplement our consolidated financial results. Our non-GAAP financial measures include non-GAAP net income (loss) attributable to common stockholders, non-GAAP net income (loss) attributable to common stockholders on a diluted per share basis (calculated using weighted average shares for GAAP diluted net income (loss) attributable to common stockholders), Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP automotive gross margin and free cash flow. These non-GAAP financial measures also facilitate management’s internal comparisons to Tesla’s historical performance as well as comparisons to the operating results of other companies. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. Management also believes that presentation of the non-GAAP financial measures provides useful information to our investors regarding our financial condition and results of operations, so that investors can see through the eyes of Tesla management regarding important financial metrics that Tesla uses to run the business and allowing investors to better understand Tesla’s performance. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Tesla’s operating performance. A reconciliation between GAAP and non-GAAP financial information is provided above.

FORWARD-LOOKING STATEMENTS

Certain statements in this update, including, but not limited to, statements in the “Outlook” section; statements relating to the development, strategy, ramp, production and capacity, demand and market growth, cost, pricing and profitability, investment, deliveries, deployment, availability and other features and improvements and timing of existing and future Tesla products and services and supporting infrastructure; statements regarding operating margin, operating profits, spending and liquidity; and statements regarding expansion, improvements and/or ramp and related timing at our facilities are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions and management’s current expectations, involve certain risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statement. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the risk of delays in launching and/or manufacturing our products, services and features cost-effectively; our ability to build and/or grow our products and services, sales, delivery, installation, servicing and charging capabilities and effectively manage this growth; our ability to successfully and timely develop, introduce and scale, as well as our consumers’ demand for, products and services based on super intelligence, robotics and automation, electric vehicles, advanced driver assistance systems, and ride-hailing services generally and our vehicles and services specifically; the ability of suppliers to deliver components according to schedules, prices, quality and volumes acceptable to us, and our ability to manage such components effectively; any issues with lithium-ion cells or other components manufactured at our factories; our ability to ramp our factories in accordance with our plans; our ability to procure supply of battery cells, including through our own manufacturing; risks relating to international operations and expansion, including unfavorable and uncertain regulatory, political, economic, tax, tariff, export controls and labor conditions; any failures by Tesla products to perform as expected or if product recalls occur; the risk of product liability claims; competition in the automotive, transportation and energy product and services and robotics markets; our ability to maintain public credibility and confidence in our long-term business prospects; our ability to manage risks relating to our various product financing programs; the status of government and economic incentives for electric vehicles and energy products; our ability to attract, hire and retain key employees and qualified personnel; our ability to maintain the security of our information and production and product systems; our compliance with various regulations and laws applicable to our operations and products, which may evolve from time to time; risks relating to our indebtedness and financing strategies; and adverse foreign exchange movements. More information on potential factors that could affect our financial results is included from time to time in our Securities and Exchange Commission filings and reports, including the risks identified under the section captioned “Risk Factors” in our annual report on Form 10-K filed with the SEC on January 28, 2026 and subsequent quarterly reports on Form 10-Q. Tesla disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events or otherwise.