Tesla Surpasses Q3 Predictions with $28B Revenue Boosted by Energy Division Surge
Austin, TX — October 22, 2026 — Electric vehicle titan Tesla (NASDAQ: TSLA) exceeded third-quarter expectations on October 21, reporting $28.05 billion in revenue and adjusted earnings of $0.48 per share, outperforming Wall Street’s predictions of $27.88 billion and $0.43 per share, respectively.
The impressive headline was largely driven by Tesla’s thriving services and energy storage sectors. Services and other revenue soared 33% year-over-year to $4.61 billion, while the energy division recorded its second-best quarter ever, deploying 13.7 GWh at a gross margin of 33.1%. The company also delivered 486,532 vehicles in the quarter, surpassing analyst expectations of approximately 461,100 units.
Despite these successes, challenges persist. Automotive revenue declined 3% year-over-year to $20.56 billion, operating income plunged 56% due to significant spending on AI and robotaxi development, and net profit fell to $787 million — a steep decrease from $1.4 billion the previous year. Tesla concluded the quarter with over $45 billion in cash and investments.
Following the report, Tesla shares dropped more than 3% in extended trading and have fallen approximately 14% year-to-date.
Source: CNBC — Tesla Exceeds Earnings and Sales Despite Auto Revenue Decline