Tesla ( TSLA ) reported third-quarter results that exceeded expectations, with both its free cash flow and capital expenditures surpassing Wall Street's forecasts.
Tesla's revenue in the third quarter was $28.05 billion, lower than the expected $28.13 billion. Adjusted earnings per share were $0.48, higher than the expected $0.44; adjusted EBITDA was $3.90 billion, higher than the expected $3.66 billion.
Tesla's stock price rose after the market closed.
Tesla reported free cash flow of ($FCF) $1.53 billion, previously estimated at -$4.92 billion; capital expenditure rose to $4.732 billion, compared to an estimate of $7.96 billion for this quarter.
Tesla revealed that its Optimus robots have begun production at the Fremont factory. The company stated in its financial report, "Although we will continue to iterate on the hardware and manufacturing processes, we have proven that the current manufacturing processes for Optimus are suitable for commercial products."
In other AI business areas, Tesla stated that it plans to reach 400 megawatts of SI ( AI ) training computing power by the end of the year. Tesla also mentioned that the number of its active FSD (full autonomous driving) subscriptions has increased to 1.74 million.
Tesla plans for capital expenditures to exceed $25 billion in 2026, compared to about $8.5 billion last year. The funds will be used for Optimus production lines, AI computing power, Cybercab mass production, as well as the Terafab chip factory that Tesla is building with SpaceX.
Recently, Musk also sparked heated discussions with his remarks regarding a possible merger with another company of his, SpaceX.
"I believe both SpaceX and Tesla have established special committees to discuss this idea," Musk said during the SpaceX earnings call on Tuesday evening. "At the request of shareholders, these special committees are composed of independent directors. Since I am a stakeholder, I am actually not able to participate in the discussions of the special committees."
He added, "I don't think we should necessarily assume that some people outside believe that the merger of SpaceX with Tesla is a foregone conclusion. I think that would be an exaggeration. Do I think it's a good idea? Yes."
Tesla reported 486,532 vehicles delivered in the third quarter, a year-on-year decrease of 2%, but far higher than the previously expected 463,000 vehicles. Energy storage deployment reached 13.7 GWh, which is higher than last year's same period of 12.5 GWh and the 13.5 GWh in the second quarter.
Tesla's sales trends vary in key markets. The United States is still feeling the impact of the cancellation of the $7,500 federal electric vehicle tax credit, which sparked a buying spree before it expired in the third quarter of last year. Cox Automotive estimates that Tesla sold approximately 144,100 electric vehicles in the third quarter in the U.S., a nearly 20% decline year-on-year. This still accounts for about 54% of the U.S. electric vehicle market, exceeding the combined sales of all other brands.
However, Tesla's wholesale sales in Shanghai in September reached 95,366 units, marking the best month of 2026, with exports increasing by 58%. In Europe, according to ACEA data, from January to August this year, Tesla's registration numbers in the EU, the UK, and EFTA increased by 43.3%.
Tesla began Cybercab commercial services in Austin on September 3, but federal regulators still have doubts. The National Highway Traffic Safety Administration (NHTSA) issued a special order to Tesla, posing 21 requirements to understand how its Cybercab models, which lack a steering wheel and pedals, meet federal safety standards. Tesla requested an extension until November 20. The deadline was later extended to 30 days, with the response due by October 30.
Last Thursday, Tesla finally unveiled the long-awaited Roadster at its facility located in Waco, Texas, SpaceX. This vehicle uses cold air propellers to overtake several Teslas, including one with the model Semi. Tesla claims that the Roadster can accelerate from 0 to 60 miles per hour in just 0.81 seconds during test runs, and Musk stated that production will begin in 2028.
Deepwater refers to Gene Munster as "a show of engineering prowess," claiming that it has little commercial value; Morningstar predicts that the sales volume in Roadster will be less than 2,000 units.
Responsible Editor: Ding Wenwu
