22 Oct 2026

$TSLA beat Q3 revenue and EPS estimates. But beneath the headline, the picture looks less convincing.

→ Automotive revenue: −3% → Operating income: −56% → Free cash flow: −62%. Robotaxis and Optimus offer upside, but execution is everything. Can Tesla turn AI ambition into profits? Tesla Q3 FY26: • Revenue flat Y/Y at $28.0B ($0.2B miss) • Gross margin 20% (+3pp Y/Y) • Operating margin 3% (-3pp Y/Y) • CapEx +110% Y/Y to $4.7B • Free cash flow -62% Y/Y to $1.5B • Non-GAAP EPS $0.48 ($0.03 beat) Key Updates: - Started providing Robotaxi rides using Cybercabs on September 3 in Austin - Optimus production began in Fremont on high-volume lines - Megafactory Texas began production, with planned capacity of 50 GWh Source: App Economy Insights, Thomas Bennett

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