The Quarter in Brief
Tesla reported its third quarter of 2026, the three months to September 30, after the market closed on October 21. Total revenues were $28.05 billion, against $28.10 billion a year earlier. Reported earnings per share were $0.22, down from $0.39. Non-GAAP earnings per share, the company's measure that leaves out stock-based pay, unrealized gains and losses on its bitcoin and its SpaceX shareholding, and certain tax items, were $0.48, down from $0.50.
Analysts had expected about $28.06 billion of revenue and about $0.45 of non-GAAP earnings per share, according to MarketBeat's consensus, so revenue was in line and earnings were ahead. What set the quarter apart was the gap between the two halves of the income statement: gross margin rose to 19.6% from 18.0%, while research and development spending rose 69% and income from operations fell 56% to $718 million.