Tesla reported third-quarter 2026 results on October 21, showing a sharp profit decline even as its newest businesses—self-driving software, robotaxis and humanoid robots—gained momentum. Total revenue was $28.05 billion, roughly flat year-on-year, while GAAP net income fell 43% to $787 million. Global deliveries slipped 2% to 486,500 vehicles.
Gross margin improved to 19.6% during the quarter, and free cash flow turned positive at $1.53 billion. The company ended the period with $45.45 billion in cash and short-term investments, according to the earnings release.
Autonomy and robots accelerate
The most notable developments were outside traditional car sales. In North America, more than 75% of new vehicles had Full Self-Driving (FSD) enabled at delivery, and active FSD subscriptions reached 1.74 million, up 67% year-on-year. Since September, Tesla has operated a robotaxi service in Austin using its Cybercab, accumulating nearly 3.22 million miles (about 5.18 million kilometres) of driverless operation—an eightfold increase quarter-over-quarter.
Tesla also said its Optimus humanoid robot has entered production on the line at its Fremont factory. On the energy side, the company's Texas储能超级工厂 (Tesla's Texas储能超级工厂) began production, with record order rates and backlog for energy storage.
Capex trimmed, focus shifts
Tesla lowered its full-year capital expenditure guidance from about $25 billion to about $20 billion, directing resources toward autonomy, robotics and energy storage. The company's stock rose 3.41% on the day of the announcement but fell more than 3% in after-hours trading.
The report was originally published by Chinese outlet 第一电动 (D1EV), which republished it from Gasgoo. Tesla's results highlight a strategic pivot from volume growth to higher-margin software and services, a trend that Chinese EV makers are watching closely as they develop their own autonomous driving and robotaxi offerings.