# Tesla's Q3 earnings show flat revenue despite Roadster hype

> Tesla reported flat revenues and a 4 percent profit drop in Q3 2026, with the flying Roadster demo failing to mask underlying business struggles.
- Title: Tesla's Q3 earnings show flat revenue despite Roadster hype
- Summary: Tesla reported flat revenues and a 4 percent profit drop in Q3 2026, with the flying Roadster demo failing to mask underlying business struggles. Tesla's Q3…
- Keywords: tesla, q3 2026 earnings, elon musk, electric vehicles, roadster, spacex, technology, culture, Tesla's, earnings, show, flat
- Source: The Verge — https://theverge.com/transportation/1015790/tesla-q3-2026-earnings-revenue-profit-roadster-spacex-merger
- Author: Andrew J. Hawkins
- Published: 2026-10-21T20:22:31+00:00
- Read time: 1 min
- Topics: tesla, q3 2026 earnings, elon musk, electric vehicles, roadster, spacex, technology, culture
## Tesla's Q3 revenues flatline
Tesla reported twenty eight billion dollars in revenue for the quarter ending September twenty twenty-six, flat compared to the same quarter last year. Net income rose to one point seven billion dollars.
## Profits drop despite revenue beat
Tesla's profits fell four percent year over year to one point seven billion dollars, even though revenues beat Wall Street expectations of twenty seven point nine billion dollars.
## Car sales drop after tax credit expires
Tesla's automotive revenues fell three percent to twenty point five billion dollars as customer deliveries dropped two point one percent.
## Energy business takes a hit
Energy generation and storage revenue plummeted sixteen percent year over year to two point nine billion dollars.
## Massive spending on AI and robotics
Tesla's capital spending soared one hundred ten percent year over year to four point seven billion dollars as the company invests in AI, autonomous vehicles, and robotics.

> a massive capex year
## Operating profit collapses
Tesla's income from operations fell fifty six percent year over year to just seven hundred eighteen million dollars, while operating expenses rose thirty nine percent to four point eight billion dollars.
## Roadster demo and merger talks ahead
Tesla revealed a redesigned Roadster prototype in Waco, Texas, featuring flying and flipping using cold-gas thrusters from SpaceX.

> a good idea
## Key takeaway

Tesla's Q3 2026 revenues flatlined at twenty eight billion dollars with profits down four percent, as the expiring federal EV tax credit and weak energy storage sales offset gains in charging and services.