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Get filing alertsTesla's net income attributable to common stockholders fell 42.7% to $787.0M in Q3 2026, including IEEPA tariff refunds.
Filed October 22, 2026 · Period ending September 30, 2026 · Compared to 10-Q Oct 23, 2025 · ~1 min read
Key Financials
SEC XBRL| Metric | PriorSep 30, 2025 | CurrentSep 30, 2026 | Δ |
|---|---|---|---|
| Revenue | $28.1B | $28.0B | ▼ -0.2% |
| Net income | $1.37B | $787.0M | ▼ -42.7% |
| Diluted EPS | $0.39 | $0.22 | ▼ -43.6% |
| Operating income | $1.62B | $718.0M | ▼ -55.8% |
| Cash & equivalents | $18.3B | $17.9B | ▼ -2.4% |
| Long-term debt | $5.61B | $7.96B | ▲ +41.8% |
| Total assets | $133.7B | $157.5B | ▲ +17.8% |
As reported in XBRL by the filer · 10-Q vs 10-Q. Income figures cover the fiscal quarter (not year-to-date); cash & assets are period-end balances. n/m = not meaningful (sign change; a % would mislead). about this table · verify on EDGAR →
Key Changes
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medium
The company invested $2.00B in SpaceX common stock during the nine months, and recognized an unrealized gain of $863.0M on the investment.
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low
Automotive regulatory credits revenue fell 72.9% to $113.0M in the quarter, including a $475 million reversal for contractual return of previously delivered credits.
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high
In the quarter, pre-tax income fell 51.2% to $956.0M while net income fell 42.7% to $787.0M; income taxes were 15.9% of pre-tax income, against 29.1% a year earlier.
Summary
Total revenue was essentially flat at $28.05B.
Operating income fell 55.8% to $718.0M, including IEEPA tariff refunds. R&D spending increased 69.4% to $2.76B. SG&A expenses also rose 29.0% to $2.02B.
Despite lower profitability, Tesla's cash generation remained strong, with nine-month operating cash flow up 36.2% to $14.90B.
Section-by-Section Diff
MD&A
Tesla's MD&A now emphasizes super intelligence (SI) initiatives, reports a new credit facility, and discloses a SpaceX equity investment.
Previous filing · verify on EDGAR →
Our mission is to accelerate the world’s transition to sustainable energy. We design, develop, manufacture, lease and sell high-performance fully electric vehicles, solar energy generation systems and energy storage products.
Current filing · verify on EDGAR →
We are focused on bringing SI into the real world, through products and services like FSD (Supervised) and Robotaxi, as well as working to develop and commercialize SI robots (including Optimus).
The company's overview now centers on super intelligence (SI) initiatives, including FSD, Robotaxi, and Optimus, replacing the prior mission statement focused on sustainable energy.
Added in current filing · verify on EDGAR →
in September 2026, we entered into three credit agreements providing aggregate commitments of $30 billion, which afford us additional flexibility to support our planned investments
Tesla disclosed entering into three credit agreements in September 2026 with aggregate commitments of $30 billion, significantly increasing its available liquidity.
Added in current filing · verify on EDGAR →
we invested $2.00 billion in SpaceX common stock during the nine months ended September 30, 2026
Tesla invested $2.00 billion in SpaceX common stock during the nine months ended September 30, 2026, a new related-party transaction.
Previous filing · verify on EDGAR →
we currently expect our capital expenditures to be approximately $9.00 billion in 2025
Current filing · verify on EDGAR →
We currently expect our capital expenditures to be in excess of $20 billion in 2026, driven by our SI initiatives, including investments in compute infrastructure and data centers
Previous filing · verify on EDGAR →
We have continued to expand and refine our Robotaxi service after its June 2025 launch, capitalizing on our AI investments and scalable mobility infrastructure to advance a service-driven business model.
Current filing · verify on EDGAR →
including the rollout of Cybercab in September 2026, capitalizing on our SI investments and scalable mobility infrastructure to advance a service-driven business model
The current filing highlights the rollout of Cybercab in September 2026, a new product milestone not present in the baseline.
Previous filing · verify on EDGAR →
the construction of a new Megafactory near Houston, Texas
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the construction of a new Megafactory near Houston, Texas, which began production in the third quarter of 2026
The Houston Megafactory began production in the third quarter of 2026, a new development compared to the baseline where it was still under construction.
Previous filing · verify on EDGAR →
The increases were primarily due to increases in Megapack and Powerwall deployments compared to the prior periods, partially offset by a decrease in average selling price of Megapack.
Current filing · verify on EDGAR →
These decreases were primarily due to tariff refunds for certain Megapack customers, a lower average selling price per Megapack unit, a decrease in Powerwall deployments, and a decrease in solar retrofit cash deployments
The current period's energy storage revenue decline is attributed to tariff refunds and lower deployments, contrasting with the prior year's growth driven by increased deployments.
Removed from previous filing · verify on EDGAR →
In the third quarter of 2025, we initiated certain actions in order to reduce costs and improve efficiency through convergence of AI chip design efforts. As a result, we recognized $238 million of expenses, within our automotive segment, related to charges for supercomputer assets, contract terminations and employee terminations.
The current filing no longer reports restructuring and other expenses, which were $238 million in the prior year quarter, indicating the absence of such charges in the current period.
Risk Factors
The risk factors section now refers to the 2025 Form 10-K and omits the prior quarterly reports, with no new risk factors disclosed.
Show 1 minor / wording change
Previous filing · verify on EDGAR →
including the factors discussed in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024, and Part II, Item 1A, Risk Factors in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025
Current filing · verify on EDGAR →
including the factors discussed in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025
The current filing incorporates by reference only the 2025 Form 10-K risk factors, whereas the baseline also incorporated the quarterly reports for the quarters ended March 31, 2025 and June 30, 2025. The baseline's statement that there were no material changes from prior reports is omitted in the current filing.
Legal Proceedings
Tesla's legal proceedings section reflects significant developments, including dismissal of derivative lawsuits, new class actions, and tariff refunds.
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Tesla and the directors filed motions to dismiss, and oral argument on those motions is scheduled for October 22, 2025.
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On April 2, 2026, these cases were reassigned to a different judge. On April 13, 2026, the Court granted Tesla’s motions to dismiss and dismissed the cases. In May 2026, plaintiffs in the consolidated and coordinated cases appealed to the Delaware Supreme Court the decision granting Tesla’s motion to dismiss.
The derivative lawsuits were dismissed by the Delaware Court of Chancery in April 2026, but plaintiffs have appealed to the Delaware Supreme Court, keeping the matter ongoing.
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The case is currently in discovery. No trial date is set but is expected to occur during 2026.
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The first phase of the trial, which is a bench trial involving only equitable relief, began on September 21, 2026, and is scheduled to proceed until October 30, 2026.
The California Civil Rights Department lawsuit has progressed to trial, with the first phase underway as of September 2026.
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On June 4, 2026, a proposed class action was filed in the U.S. District Court for the Northern District of California against Tesla, Inc. and related entities. The complaint alleges that Tesla made certain statements regarding the capabilities of its driver assistance technology systems.
A new proposed class action was filed in June 2026 alleging misrepresentations about driver assistance technology, adding to Tesla's litigation exposure.
Previous filing · verify on EDGAR →
On August 18, 2025, the Court certified a class comprised of California consumers who are not subject to an arbitration agreement.
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On October 16, 2026, the Ninth Circuit reversed the district court and vacated the class certification order. The case was returned to the district court for further proceedings.
The Ninth Circuit reversed the class certification in the Autopilot class action, sending the case back to the district court, which may reduce Tesla's immediate class action exposure.
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On September 15, 2025, the Company filed a post-trial motion for judgment as a matter of law or, in the alternative, a new trial on all issues or an amended judgment to lesser compensatory and punitive damages.
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On February 19, 2026, the Court denied the Company’s post-trial motions, and on July 2, 2026, the Company filed its opening brief with the U.S. Court of Appeals for the Eleventh Circuit. Plaintiffs filed their response on September 16, 2026, and Tesla’s reply is due by November 6, 2026.
Tesla's post-trial motions were denied, and the company has appealed the Benavides verdict to the Eleventh Circuit, with briefing ongoing.
Added in current filing · verify on EDGAR →
During the three months ended September 30, 2026, we recognized IEEPA tariff refunds of $526 million and $260 million as reductions to energy generation and storage cost of revenues and automotive sales cost of revenues, respectively.
Tesla recognized significant tariff refunds following a Supreme Court ruling, positively impacting cost of revenues in the third quarter of 2026.
Removed from previous filing · verify on EDGAR →
On June 4, 2018, a purported Tesla stockholder filed a putative class and derivative action in the Delaware Court of Chancery against Elon Musk and the members of Tesla’s board of directors as then constituted, alleging corporate waste, unjust enrichment and that such board members breached their fiduciary duties by approving the 2018 CEO Performance Award.
The section on the 2018 CEO Performance Award litigation has been removed from the current filing.
Show 1 minor / wording change
Removed from previous filing · verify on EDGAR →
On June 17, 2020, a purported Tesla stockholder filed a derivative action in the Delaware Court of Chancery, purportedly on behalf of Tesla, against certain of Tesla’s current and former directors regarding compensation awards granted to Tesla’s directors, other than Elon Musk, between 2017 and 2020.
The directors' compensation litigation is no longer described in the current legal proceedings section.
Notes
Tesla's notes now disclose a SpaceX equity investment, a new 2025 CEO Performance Award with significant stock-based compensation, and a reversal of automotive regulatory credits revenue.
Added in current filing · verify on EDGAR →
Upon receiving the applicable regulatory approvals, the Company invested $2.00 billion in SpaceX common stock (formerly a preferred share investment in xAI) representing an ownership interest of less than 1% in March 2026.
Tesla made a new investment in SpaceX common stock in March 2026, accounted for under the equity method with a fair value option election. This investment is presented within Other non-current assets and its unrealized gain was recognized in other income for the nine months ended September 30, 2026.
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On September 3, 2025 (the “2025 CEO Performance Award Grant Date”), the Board of Directors granted the 2025 CEO Performance Award to our CEO, consisting of approximately 423.7 million shares of performance-based restricted stock to our CEO, which was approved on November 6, 2025 by our shareholders (the “2025 CEO Performance Award Accounting Grant Date”).
The 2025 CEO Performance Award was approved by shareholders in November 2025 and is now being expensed. For the three and nine months ended September 30, 2026, Tesla recorded stock-based compensation expense related to this award, with significant unrecognized expense for probable and not probable milestones.
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In 2025, governmental and regulatory actions have repealed and/or restricted certain regulatory credit programs tied to our products, contributing to the $1.41 billion decrease in our remaining performance obligations as of September 30, 2025 compared to December 31, 2024.
Current filing · verify on EDGAR →
During the three and nine months ended September 30, 2026, we reversed $475 million of automotive regulatory credits revenue for contractual return of previously delivered credits.
Added in current filing · verify on EDGAR →
During the three months ended September 30, 2026, we recognized IEEPA tariff refunds of $526 million and $260 million as reductions to energy generation and storage cost of revenues and automotive sales cost of revenues, respectively.
Tesla recognized IEEPA tariff refunds in the third quarter of 2026 as reductions to cost of revenues, following a U.S. Supreme Court ruling invalidating certain tariffs. This is a new disclosure not present in the prior year's notes.
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Tesla and the directors filed motions to dismiss, and oral argument on those motions is scheduled for October 22, 2025.
Current filing · verify on EDGAR →
On April 2, 2026, these cases were reassigned to a different judge. On April 13, 2026, the Court granted Tesla’s motions to dismiss and dismissed the cases. In May 2026, plaintiffs in the consolidated and coordinated cases appealed to the Delaware Supreme Court the decision granting Tesla’s motion to dismiss.
The Delaware derivative lawsuits were dismissed in April 2026, but plaintiffs appealed in May 2026. The prior year's notes only indicated that oral argument on motions to dismiss was scheduled.
Previous filing · verify on EDGAR →
The case is currently in discovery. No trial date is set but is expected to occur during 2026.
Current filing · verify on EDGAR →
The first phase of the trial, which is a bench trial involving only equitable relief, began on September 21, 2026, and is scheduled to proceed until October 30, 2026.
The California Civil Rights Department lawsuit has progressed from discovery to trial, with the first phase beginning in September 2026. This represents a material development in the litigation.
Added in current filing · verify on EDGAR →
Oral argument in the Ninth Circuit occurred on August 31, 2026, and on October 16, 2026, the Ninth Circuit reversed the district court and vacated the class certification order.
Previous filing · verify on EDGAR →
On September 15, 2025, the Company filed a post-trial motion for judgment as a matter of law or, in the alternative, a new trial on all issues or an amended judgment to lesser compensatory and punitive damages.
Current filing · verify on EDGAR →
On February 19, 2026, the Court denied the Company’s post-trial motions, and on July 2, 2026, the Company filed its opening brief with the U.S. Court of Appeals for the Eleventh Circuit.
The post-trial motions in the Benavides product liability case were denied in February 2026, and Tesla filed its opening brief on appeal in July 2026. The prior year's notes only mentioned the filing of post-trial motions.
Financial Statements
Primary statements as printed on the EDGAR filing (iXBRL face). Companyfacts is used only when a statement is not on the HTML face. Not generated by the model.
Consolidated Statements of Operations (Unaudited)
(in millions, except per share data)
| Description | Three months ended September 30, 2026 | Three months ended September 30, 2025 | Nine months ended September 30, 2026 | Nine months ended September 30, 2025 |
|---|---|---|---|---|
| Revenues | ||||
| Automotive sales | 20,094 | 20,359 | 55,573 | 49,071 |
| Automotive regulatory credits | 113 | 417 | 639 | 1,451 |
| Automotive leasing | 353 | 429 | 1,098 | 1,311 |
| Total automotive revenues | 20,560 | 21,205 | 57,310 | 51,833 |
| Energy generation and storage | 2,881 | 3,415 | 8,428 | 8,934 |
| Services and other | 4,605 | 3,475 | 12,931 | 9,159 |
| Total revenues | 28,046 | 28,095 | 78,669 | 69,926 |
| Cost of revenues | ||||
| Automotive sales | 16,570 | 17,365 | 46,052 | 42,393 |
| Automotive leasing | 184 | 225 | 567 | 692 |
| Total automotive cost of revenues | 16,754 | 17,590 | 46,619 | 43,085 |
| Energy generation and storage | 1,927 | 2,342 | 5,882 | 6,230 |
| Services and other | 3,871 | 3,109 | 11,203 | 8,526 |
| Total cost of revenues | 22,552 | 23,041 | 63,704 | 57,841 |
| Gross profit | 5,494 | 5,054 | 14,965 | 12,085 |
| Operating expenses | ||||
| Research and development | 2,761 | 1,630 | 7,078 | 4,628 |
| Selling, general and administrative | 2,015 | 1,562 | 5,830 | 4,179 |
| Restructuring and other | — | 238 | — | 332 |
| Total operating expenses | 4,776 | 3,430 | 12,908 | 9,139 |
| Income from operations | 718 | 1,624 | 2,057 | 2,946 |
| Interest income | 445 | 439 | 1,301 | 1,231 |
| Interest expense | (90) | (76) | (263) | (253) |
| Other (expense) income, net | (117) | (28) | (62) | 173 |
| Income before income taxes | 956 | 1,959 | 3,033 | 4,097 |
| Provision for income taxes | 152 | 570 | 610 | 1,098 |
| Net income | 804 | 1,389 | 2,423 | 2,999 |
| Net income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | 17 | 16 | 45 | 45 |
| Net income attributable to common stockholders | 787 | 1,373 | 2,378 | 2,954 |
| Net income per share of common stock attributable to common stockholders | ||||
| Basic | 0.24 | 0.43 | 0.74 | 0.92 |
| Diluted | 0.22 | 0.39 | 0.67 | 0.84 |
| Weighted average shares used in computing net income per share of common stock | ||||
| Basic | 3,240 | 3,227 | 3,237 | 3,223 |
| Diluted | 3,541 | 3,526 | 3,539 | 3,523 |
Consolidated Balance Sheets (Unaudited)
(in millions, except per share data)
| Description | September 30, 2026 | December 31, 2025 |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 17,853 | 16,513 |
| Short-term investments | 27,594 | 27,546 |
| Accounts receivable, net | 4,636 | 4,576 |
| Inventory | 14,092 | 12,392 |
| Prepaid expenses and other current assets | 6,227 | 7,615 |
| Total current assets | 70,402 | 68,642 |
| Operating lease vehicles, net | 4,047 | 4,912 |
| Energy generation and storage systems, net | 4,453 | 4,604 |
| Property, plant and equipment, net | 50,591 | 40,643 |
| Operating lease right-of-use assets | 6,555 | 6,027 |
| Digital assets | 962 | 1,008 |
| Deferred tax assets | 7,908 | 6,925 |
| Other non-current assets | 12,599 | 5,045 |
| Total assets | 157,517 | 137,806 |
| Liabilities | ||
| Current liabilities | ||
| Accounts payable | 17,239 | 13,371 |
| Accrued liabilities and other | 17,205 | 13,279 |
| Deferred revenue | 4,661 | 3,424 |
| Current portion of debt and finance leases | 1,387 | 1,640 |
| Total current liabilities | 40,492 | 31,714 |
| Debt and finance leases, net of current portion | 8,136 | 6,736 |
| Deferred revenue, net of current portion | 4,126 | 3,631 |
| Other long-term liabilities | 14,874 | 12,860 |
| Total liabilities | 67,628 | 54,941 |
| Commitments and contingencies (Note 11) | ||
| Redeemable noncontrolling interests in subsidiaries | 54 | 58 |
| Equity | ||
| Stockholders’ equity | ||
| Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding | — | — |
| Common stock; $0.001 par value; 6,000 shares authorized; 3,953 and 3,751 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively | 4 | 3 |
| Additional paid-in capital | 47,415 | 42,770 |
| Accumulated other comprehensive income | 489 | 361 |
| Retained earnings | 41,381 | 39,003 |
| Total stockholders’ equity | 89,289 | 82,137 |
| Noncontrolling interests in subsidiaries | 546 | 670 |
| Total liabilities and equity | 157,517 | 137,806 |
Consolidated Statements of Cash Flows (Unaudited)
(in millions)
| Description | Nine months ended September 30, 2026 | Nine months ended September 30, 2025 |
|---|---|---|
| Cash Flows from Operating Activities | ||
| Net income | 2,423 | 2,999 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation, amortization and impairment | 5,061 | 4,505 |
| Stock-based compensation | 3,346 | 1,871 |
| Inventory write-downs | 230 | 313 |
| Foreign currency transaction net unrealized loss | 901 | 160 |
| Deferred income taxes | (658) | 234 |
| SpaceX equity investment unrealized gain | (863) | — |
| Digital assets unrealized loss (gain) | 46 | (239) |
| Non-cash interest and other operating activities | 43 | 235 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (188) | (306) |
| Inventory | (1,976) | (416) |
| Operating lease vehicles | 300 | 54 |
| Prepaid expenses and other assets | (2,846) | (2,280) |
| Accounts payable, accrued and other liabilities | 7,332 | 2,979 |
| Deferred revenue | 1,746 | 825 |
| Net cash provided by operating activities | 14,897 | 10,934 |
| Cash Flows from Investing Activities | ||
| Purchases of property and equipment excluding finance leases, net of sales | (13,014) | (6,134) |
| Purchase of SpaceX equity investment | (2,002) | — |
| Purchases of short-term investments | (22,646) | (24,902) |
| Proceeds from maturities of short-term investments | 22,741 | 22,086 |
| Purchase of intangible assets | (7) | — |
| Net cash used in investing activities | (14,928) | (8,950) |
| Cash Flows from Financing Activities | ||
| Proceeds from issuances of debt | 5,834 | 4,232 |
| Repayments of debt | (4,954) | (4,798) |
| Debt issuance costs | (53) | (5) |
| Proceeds from exercises of stock options and other stock issuances, net of issuance costs | 782 | 1,040 |
| Principal payments on finance leases | (63) | (85) |
| Proceeds received from directors in shareholder settlement | — | 277 |
| Recovery (payment) of legal fees associated with shareholder settlement | 116 | (176) |
| Distributions paid to noncontrolling interests in subsidiaries | (126) | (56) |
| Net cash provided by financing activities | 1,536 | 429 |
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (115) | 134 |
| Net increase in cash and cash equivalents and restricted cash | 1,390 | 2,547 |
| Cash and cash equivalents and restricted cash, beginning of period | 17,616 | 17,037 |
| Cash and cash equivalents and restricted cash, end of period | 19,006 | 19,584 |
| Supplemental Non-Cash Investing and Financing Activities | ||
| Acquisitions of property and equipment included in liabilities | 3,667 | 1,631 |
| Leased assets obtained in exchange for operating lease liabilities | 1,309 | 1,171 |
| Tax credits for property and equipment included in assets | 857 | 164 |
| Leased assets obtained in exchange for finance lease liabilities | 98 | — |
Amounts as printed on the EDGAR/iXBRL face — (in millions, except per share data); (in millions). Labels, columns, and figures are the filing face, not a GAAP stencil. Interactive statements & notes on EDGAR ↗
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Figures/quotes linked to EDGAR · Narrative written by AI · Oct 22, 2026 · How we verify