Tesla 10-Q: Q3 Net Income Falls to $787M as AI Spend Cuts Operating Income 56%
TSLA sits 24% above its 52-week low of $297.38.
Summary
Tesla's Q3 10-Q confirms the earnings miss: revenue of $28.05B was flat but operating income fell 56% to $718M on surging AI and R&D spend, leaving $787M of net income. It also details $30B of new credit facilities and a board special committee exploring a possible SpaceX combination.
Key Events · Earnings and Guidance · TSLA
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Q3 Profit Collapses on AI Spend
Revenue of $28,046M was flat versus $28,095M a year ago, but operating income fell to $718M from $1,624M as R&D rose 69% to $2,761M and SG&A rose 29% to $2,015M. Net income attributable to common stockholders was $787M, or $0.22 diluted, down from $1,373M.
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$30B Credit Facilities Signed
In September 2026 Tesla entered a $20.00B delayed draw term loan maturing September 2029, an $8.00B five-year revolver and a $2.00B 364-day revolver, replacing the $5.00B RCF Credit Agreement. Total debt outstanding was $9.28B, with $30.00B of unused committed amounts.
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Cash and Capex Both Climb
Nine-month operating cash flow was $14,897M against capital expenditures of $13,014M, and cash plus short-term investments reached $45.45B. Management guides 2026 capital expenditures above $20B, driven by SI compute, data centers and manufacturing expansion.
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SpaceX Combination Under Review
The board formed a special committee of disinterested directors to explore deepening Tesla's relationship with SpaceX, including a potential business combination. No assurance any transaction will be consummated; it would require the committee's recommendation and any necessary shareholder approval.
Analysis · TSLA · Manufacturing
Hard numbers now back the Q3 miss first reported on October 21. Revenue of $28.05B was flat year over year, but operating income fell to $718M from $1,624M as R&D jumped 69% to $2,761M and SG&A rose 29% to $2,015M. Net income attributable to common stockholders dropped to $787M, or $0.22 diluted, from $1,373M. Liquidity is the offset: $45.45B in cash and short-term investments plus $30B of new undrawn credit commitments signed in September, which funds the planned capital spending above $20B this year. The filing also formally discloses that Tesla's board formed a special committee of disinterested directors to explore deepening ties with SpaceX, including a possible business combination — a governance event that could reshape the equity story and carries no assurance any transaction happens.
How filings like this one have moved
In the 30 days to Oct 22, 2026, 36.8% of the 1026 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.78%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, TSLA was trading at $367.79 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $1.5T. The 52-week trading range was $297.38 to $498.83. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.