London Daily

Focus on the big picture.
Thursday, Sep 10, 2026

Tesla surprises with a profit in the third quarter

Tesla surprises with a profit in the third quarter

Tesla returned to profitability in the third quarter after two periods of losses surprising Wall Street and sending shares higher in after-market trading, according to earnings reported after market closed Wednesday.

The automaker’s third-quarter results included $143 million in net income, or 80 cents a share, compared with $311 million, or $1.82 a share, in the same year-ago period. Tesla earned $342 million, or $1.91 a share, in the third quarter when adjusted for one-time items.

Analysts had expected a loss of 46 cents per share and revenue of $6.42 billion, according to data compiled by FactSet.

Tesla reported revenue of $6.3 billion, slightly lower than the $6.35 billion generated in the previous period and more than 7.5% lower than the same quarter last year. But it was in line with analysts expectations.

Tesla said it is “highly confident” deliveries will exceed 360,000 deliveries this year.

The third-quarter report sent Tesla shares as high as 17% in after-market trading.

Tesla was also able to improve its automotive gross margins, an important sign of its financial health. The automotive gross margin widened to 22.8% in the third quarter, from 18.9% in the previous period. The automotive gross margin has not yet recovered to the 25.8% of the same quarter in 2018.

Tesla also reported free cash flow (operating cash flow less capital expenditures) of $371 million. The company’s cash and cash equivalents balance increased to $5.3 billion.

“We continue to believe our business has grown to the point of being self-funding,” Tesla said in its earnings report.

The third-quarter report contained a number of positive signs for the automaker and marked a reversal from several consecutive quarters of losses. Tesla said its factory in Shanghai is ahead of schedule and trial production has started.

The Model Y is also ahead of schedule, Tesla said. Production of the Model Y is expected to begin by summer 2020.

Last quarter, Tesla reported a wider-than-expected loss of $408 million, or $2.31 per share, and generated $6.3 billion in revenue in the second quarter despite record deliveries of its electric vehicles.

Other important highlights from the third quarter:

-The average selling price of Tesla’s vehicles have fallen. Tesla noted that the mix of Model 3 variants had increased.


-Automotive revenues were flat at $5.35 billion compared to the previous quarter. The company was able to reach profitability in large part due to cost-cutting measures. Operating expenses were 15% lower than the previous quarter.


-Tesla said it plans to “gradually release nearly $500 million of accumulated deferred revenue tied to Autopilot and Full Self Driving features.”


-Solar installations rebounded 48% to 43 megawatts in the third quarter. However, installations are still 54% lower than the same period last year.


-Energy storage deployments has continued to grow, reaching an all-time high of 477 MWh in the third quarter.

Newsletter

Related Articles

0:00
0:00
Close
Buckingham Palace Says Prince Harry and Meghan Will Not Resume Official Royal Duties
UK Treasury Faces Calls to Scrap £100,000 Childcare Support Threshold
Trades Union Congress Urges Labour Government to Rewrite Migration Policy
Riot Police Deployed After Anti-Migrant Protests Turn Violent in Portsmouth
UK Considers Replacing Some Disability Cash Payments With Direct Services
JPMorgan’s Jamie Dimon Warns UK Chancellor Against Higher Banking Taxes
UK Announces New Sanctions Targeting Israeli Settlements in West Bank
Metropolitan Police Investigate Alleged Illegal Donations to Reform UK
UK Charges Wiltshire Man With Assisting Russian Intelligence
UK Orders Urgent Review After Air Traffic Failure Cancels More Than 2,000 Flights
Merz Rebukes AfD Expansion in Saxony-Anhalt
King Charles Confirms Prince Harry and Meghan Will Remain Private Citizens
Labour Selects Former Child Refugee for By-Election in Keir Starmer’s Former Seat
Foreign Private Equity Accelerates Takeovers of London-Listed Industrial Companies
NHS Maternity Care Faces Scrutiny Over Support for Mothers After Caesarean Births
BBC Warns Staff Strikes Are Likely Amid Job Cuts and Programme Cancellations
English Housing Affordability Improves to Best Level in More Than a Decade
UK Health Commission Proposes Framework for Wider AI Adoption Across NHS
Labour Faces Pressure for Wealth Tax Ahead of Autumn Budget
Metropolitan Police Open Criminal Investigation Into Alleged Foreign Donations to Reform UK
UK Police Deploy Riot Officers After Anti-Immigration Unrest in Portsmouth and Dover
UK Defends Sanctions on Israeli Settlements Despite Diplomatic Retaliation
UK Air Traffic Control Failure Cancels More Than 1,000 Flights and Disrupts 65,000 Passengers
Compass Urges £10 Million Wealth Tax and Public Ownership Ahead of UK Autumn Budget
UK Government’s Devolution Plans Face House of Lords Scrutiny
Maldives Seeks New Chagos Sovereignty Talks With UK Prime Minister Andy Burnham
UK Airports Face Continuing Disruption After National Air Traffic Control Failure
UK Bans Imports From Israeli Settlements and Expands Sanctions on Iran
British Chambers of Commerce Forecasts UK Growth of 1% as Investment Remains Weak
UK Suspends Local Government Reorganisation Decisions and Cancels Planned Shadow Authority Polls
UK Parliament Opens Inquiry Into Gaps in Climate Change Preparedness
Andy Burnham and Xi Jinping Hold Talks on Trade, Security and British Consular Cases
UK Joins France, Canada and Other Nations in Measures Against Israeli West Bank Settlements
UK Announces New Sanctions Targeting Iranian Nuclear and Military Networks
British Chambers of Commerce Calls for Business Rate Reform and Productivity Support
UK Farmers Warn Dry Summer Could Reduce Crop Yields and Push Up Food Prices
UK Rail Networks Hit by Widespread Delays After Major Signalling Failures
Matt Clifford Resigns as ARIA Chair After Conflict-of-Interest Scrutiny
UK and France Say Joint Border Operations Have Prevented More Than 48,000 Irregular Channel Crossings
UK Core Inflation Remains Above Expectations as Utility and Commodity Costs Stay Elevated
Jaguar Land Rover Considers Up to 4,000 UK Job Cuts Amid Automotive Industry Pressure
UK Government Pauses Local Authority Reorganisation for Legal Review
UK Public Borrowing Reaches £1.8 Billion in July, Adding Pressure Before Autumn Budget
Chancellor John Healey Puts Regional Devolution and Fiscal Discipline at Heart of UK Growth Plan
Counter-Terrorism Police Lead Salford Investigation After Two Teenagers Charged
UK Rejects Financial Reparations for Transatlantic Slavery
UK and Egypt Step Up Diplomacy Over Escalating West Bank Tensions
UK Pauses Council Reorganisation Across Four English Counties
Jaguar Land Rover Plans 4,000 Job Cuts in Major UK Restructuring
UK Unveils Planning and Regulatory Overhaul to Speed Infrastructure and Economic Growth
×