Tesla profit falls 43% as it starts Optimus robot production and delays unsupervised self-driving
Tesla's third-quarter net income fell 43% to $787 million on flat revenue of about $28 billion, as it began early Optimus production and pushed unsupervised FSD to around Q2 2027.
Photo: Oleg Alexandrov, CC BY-SA 3.0
Tesla reported third-quarter 2026 revenue of about $28.05 billion, roughly flat from a year earlier. Net income fell 43% to $787 million ($0.22 a share), and operating income fell 56% to $718 million, a 2.6% operating margin. Free cash flow was about $1.5 billion, with $45.4 billion in cash and investments.Sources:1Tesla press release (via Stock Titan): Tesla Releases Third Quarter 2026 Financial Results, Tesla press release (via Stock Titan), 21 October 2026 (source, opens in a new tab)2Electrek: Tesla (TSLA) releases Q3 2026 financial results: margins rebound, profit still falls, Electrek, 21 October 2026 (source, opens in a new tab)3TechCrunch: Tesla starts Optimus robot production in California as profit falls 43%, TechCrunch, 21 October 2026 (source, opens in a new tab)
Research and development spending rose 69% to $2.76 billion. Deliveries were 486,532 vehicles, down about 2% from a year earlier. Energy revenue fell 16%, which Tesla blamed on tariff-related customer refunds.Sources:2Electrek: Tesla (TSLA) releases Q3 2026 financial results: margins rebound, profit still falls, Electrek, 21 October 2026 (source, opens in a new tab)3TechCrunch: Tesla starts Optimus robot production in California as profit falls 43%, TechCrunch, 21 October 2026 (source, opens in a new tab)
Tesla said it had begun producing Optimus humanoid robots at its Fremont, California factory; CEO Elon Musk called it "early production" and said the ramp would be "somewhat bumpy." Ashok Elluswamy, vice president of AI software, said unsupervised FSD could reach the first customer cars around the second quarter of 2027. In April Musk had said it would "probably" arrive in the fourth quarter of 2026.Sources:1Tesla press release (via Stock Titan): Tesla Releases Third Quarter 2026 Financial Results, Tesla press release (via Stock Titan), 21 October 2026 (source, opens in a new tab)3TechCrunch: Tesla starts Optimus robot production in California as profit falls 43%, TechCrunch, 21 October 2026 (source, opens in a new tab)
Where it happened
Who is involved
- TeslaReported lower Q3 profit and began early Optimus productionUS electric vehicle, energy and robotics companySources:1Tesla press release (via Stock Titan): Tesla Releases Third Quarter 2026 Financial Results, Tesla press release (via Stock Titan), 21 October 2026 (source, opens in a new tab)2Electrek: Tesla (TSLA) releases Q3 2026 financial results: margins rebound, profit still falls, Electrek, 21 October 2026 (source, opens in a new tab)3TechCrunch: Tesla starts Optimus robot production in California as profit falls 43%, TechCrunch, 21 October 2026 (source, opens in a new tab)
- Elon MuskCalled Optimus output "early production" and warned of a bumpy rampCEO of Tesla
- Ashok ElluswamyGave the around-Q2-2027 timeline for unsupervised FSDVice president of AI software at Tesla
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