Tesla Q3 GAAP profit falls as free cash flow turns positive
Tesla (TSLA) reported third-quarter 2026 GAAP net income attributable to common shareholders of $787 million, compared with $1,373 million a year earlier. GAAP diluted EPS fell to $0.22 from $0.39.[1]
Cash flow and adjusted earnings
Non-GAAP diluted EPS was $0.48, compared with $0.50 in the third quarter of 2025. That adjusted figure is separate from reported GAAP earnings.[1]
Free cash flow was positive $1,531 million, compared with negative $1,092 million in the preceding quarter. Tesla defines the measure as operating cash flow less capital expenditures.[1]
Capital expenditures were $4,732 million, down from $5,789 million in the preceding quarter.[1]
What matters for shareholders
Analysis.The quarter pairs lower year-over-year profit with a sequential cash-flow recovery. Lower capital spending helped the cash comparison, so positive free cash flow should not be read as proof that earnings improved. The reported and adjusted EPS figures both declined from a year earlier.[1]
Sources
- 1.Tesla Q3 2026 shareholder update, SEC exhibitOct 21, 2026
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