Tesla reported $20.56 billion in automotive revenue for the third quarter, a 3% year-over-year decline. Total revenue remained flat at $28 billion, supported by ancillary business segments. GAAP net income dropped 43% compared to the same period last year, reaching $787 million.
Profitability was impacted by a decrease in revenue from CO2 regulatory credits, which fell from $417 million in Q3 2025 to $113 million. The company's operating margin stood at 2.6%, attributed in part to lower average vehicle selling prices.
Production reached 464,000 vehicles in the third quarter, a 3.7% increase year-over-year. Deliveries totaled over 486,000 units, exceeding production by more than 22,000 vehicles. Tesla has commenced series production of the Tesla Semi truck.
The company reported its largest passenger car backlog in four years. Capital expenditure for the year is projected to reach approximately $20 billion. CEO Elon Musk stated that external deliveries of the Optimus humanoid robot could begin by the end of 2027.
