Tesla Q3 Earnings Disappoint As Net Profit Plunges 44% To $787 Million, Elon Musk-Led Electric Vehicle Maker Reports Flat Revenue Of $28 Billion

Mumbai: Elon Musk-led electric vehicle manufacturer Tesla reported a sharp 44 per cent year-on-year decline in net profit for the third quarter of 2026, even as the company's cash flow improved significantly.

The Texas-based automaker posted a net income of $787 million, while quarterly revenue remained largely unchanged at $28 billion, reflecting continued pressure on profitability.

Tesla Q3 Earnings: Profit Falls, Cash Flow Improves

Despite weaker earnings, Tesla reported free cash flow of $1.5 billion during the quarter, indicating stronger cash generation.

The electric vehicle giant also nearly doubled its capital expenditure to $4.7 billion, highlighting increased investments in manufacturing facilities, advanced technologies and future products.

The contrasting financial performance comes as Tesla continues expanding beyond electric vehicles into emerging technologies.

Elon Musk Discusses Possible Tesla-SpaceX Merger

Meanwhile, Musk has acknowledged discussions surrounding a potential merger between Tesla and SpaceX. During recent earnings discussions, he indicated that special committees had been established at both companies to examine the proposal.

However, Musk cautioned that several challenges remained before any transaction could materialise. He provided limited additional information during Tesla's earnings call, leaving investors awaiting further clarity.

Tesla Roadster Demonstration Draws Attention

The earnings announcement follows Tesla's recent demonstration of its redesigned Roadster sports car at a SpaceX facility in Texas.

During the presentation, a prototype briefly lifted off the ground while travelling along an elevated curved track before landing safely.

The demonstration attracted attention because of its resemblance to futuristic flying-car technology.

SpaceX Revenue Jumps 161%

Separately, SpaceX reported quarterly revenue of $14.58 billion, representing a 161 per cent year-on-year increase. Musk expressed optimism about the company's long-term growth prospects, particularly opportunities linked to artificial intelligence infrastructure.

He suggested that SpaceX's annual revenue could potentially reach $1 trillion by 2028. However, such projections remain ambitious, while investors continue monitoring Tesla's profitability, capital expenditure and potential corporate restructuring.