From Ars Technica · · 1m 20s
Tesla profits plunge 43% as costs soar and credits dry up
Tesla's third-quarter earnings reveal a sharp drop in profitability despite flat revenues, driven by rising expenses and the loss of lucrative regulatory credits.
In brief
Tesla's third-quarter earnings reveal a sharp drop in profitability despite flat revenues, driven by rising expenses and the loss of lucrative regulatory credits. Tesla's net profit fell forty three percent year over year to seven hundred eighty seven million dollars in Q three twenty twenty six, as operating expenses…
Tesla's Q3 revenue stays flat
Tesla brought in twenty eight billion dollars in revenue in Q three, almost the same as in twenty twenty five. Automotive revenues fell three percent year over year to twenty point six billion dollars.
Energy business and credits collapse
Solar and storage battery revenue fell sixteen percent to two point nine billion dollars. Regulatory credits plummeted to one hundred thirteen million dollars from four hundred seventeen million dollars a year earlier.
Operating expenses surge 39 percent
Tesla's operating expenses rose thirty nine percent to four point eight billion dollars, cutting the operating margin to two point six percent from five point eight percent a year ago.
Net profit falls 43 percent
Tesla's net profit dropped forty three percent year over year to seven hundred eighty seven million dollars. Free cash flow fell sixty two percent to one point five billion dollars as costs outpaced revenue growth.
The headline
Tesla's net profit fell forty three percent year over year to seven hundred eighty seven million dollars in Q three twenty twenty six, as operating expenses jumped thirty nine percent and regulatory credit sales collapsed.
