October 22, 2026

Tesla's Q3 profit fell 43% as AI and Optimus spending climbed

Tesla's revenue was flat at $28.05 billion, but net income dropped to $787 million as research costs jumped 69% and regulatory credit income shrank.

• Tesla reported $28.05 billion in Q3 2026 revenue, flat from a year ago, and GAAP net income of $787 million, down 43%.
• Operating income fell 56% to $718 million as operating expenses rose 39% to $4.78 billion, led by a 69% jump in research spending.
• Regulatory credit revenue fell to $113 million from $417 million, and energy storage revenue dropped 16% to $2.88 billion.
• Tesla says Optimus has started production in Fremont and its Robotaxi service passed nearly 2 million unsupervised miles.

Why it matters: Tesla reported flat Q3 2026 revenue of $28.05 billion and GAAP net income of $787 million, down 43% from a year ago. Operating costs rose 39% as research spending on AI, Optimus and the Cybercab jumped 69%. Capital spending more than doubled to $4.73 billion, while regulatory credit income fell by almost three quarters. Tesla also says Optimus production has begun.