- Company name
- Tesla
- Sector
- Electric vehicles, energy storage & autonomy
- About
- Tesla designs, makes and sells electric vehicles, mainly the Model 3 and Model Y. It also sells the Cybertruck, the Tesla Semi and, since September 2026, the Cybercab, a car without a steering wheel for its Robotaxi service. It sells energy storage products such as Megapack and Powerwall, and solar products. It earns money from services such as FSD (Supervised) software, Supercharging, insurance and used cars. It develops Optimus, a humanoid robot. In the first nine months of 2026, revenue was $78.7 billion: $57.3 billion from automotive, $8.4 billion from energy and $12.9 billion from services and other. Tesla delivered about 1.32 million vehicles in that period. Elon Musk is CEO of Tesla and also of SpaceX.
- Thesis
- The market prices Tesla mostly for autonomy and robots, not for its car business. The car business now earns little. The operating margin was 2.6% in Q3 2026, against 5.8% a year earlier, and revenue did not grow. Regulatory credit revenue fell 73%, and energy revenue fell 16%. Research and development grew 69% in Q3 2026, and Tesla expects capital spending above $20 billion in 2026 for AI computing, factories and its own fleet. So most of the value depends on Robotaxi, Cybercab, FSD and Optimus, which earn little revenue today. For the gap to close, three things must be true. Robotaxi must expand to many cities, with Cybercab in volume production in 2027. FSD subscriptions and services revenue must grow into a large source of profit. The car and energy business must return to an operating margin above about 5% while capital spending rises. The Q4 2026 delivery report in early January 2027 and the Q4 2026 results, expected in late January 2027, are the next tests. The full evidence comes over several years, so the gap can close only slowly, if at all.
- Risks
- Most of the value depends on Robotaxi, Cybercab, FSD and Optimus, which earn little revenue today. Regulators can slow the launch of driverless service, and a serious crash can stop it.
The car business earns thin margins. The operating margin was 2.6% in Q3 2026. Competition in China and Europe, the end of U.S. tax credits for electric vehicles and lower regulatory credit revenue push prices and profit down.
Capital spending above $20 billion in 2026 leaves little free cash flow: operating cash flow was $14.9 billion and capital spending was $13.0 billion in the first nine months. More spending can need the new $30 billion credit facilities.
Elon Musk is also CEO of SpaceX. Tesla invested $2.0 billion in SpaceX shares in March 2026 and sold $626 million of Megapacks to SpaceX in the first nine months of 2026. His time and these deals can create conflicts.
Tariffs on imported battery cells raise costs most for the energy business, whose revenue fell 16% in Q3 2026.
- Balance sheet
- Cash: $45.4B
Debt: $9.3B
Net cash: $36.2B
Interest cover: 8.0×
Undrawn credit line: $30.0B
Debt due within 12 months: $1.3B
Last debt due: 2052
Tesla holds much more cash than debt. At September 30, 2026, cash, cash equivalents and short-term investments were $45.4 billion. Debt principal was $9.3 billion, and almost all of it is non-recourse: $6.0 billion from a China working capital facility due by September 2027, $2.7 billion of automotive asset-backed notes and $0.7 billion of energy asset-backed notes. On September 29, 2026, Tesla signed $30 billion of unsecured credit facilities that run to September 2027, September 2029 and September 2031. Nothing was drawn, and they require at least $5.0 billion of liquidity. In the first nine months of 2026, operating cash flow was $14.9 billion and capital spending was $13.0 billion. Tesla expects capital spending above $20 billion in 2026. Interest cover is operating income divided by interest expense for the first nine months of 2026; it fell as operating income fell.
As of 2026-09-30.
- Checkpoints
- Jan 21, 2027 (estimate): Q4 2026 results and 2027 plans. Pending. Watch: An operating margin back near 5% with a date for Cybercab volume production passes; a lower margin with higher capital spending and no volume date fails.
Jan 2027 (estimate): Q4 2026 deliveries. Pending. Watch: Q4 2026 deliveries above those of Q4 2025 pass; another year-on-year decline fails.
2027 (estimate): Robotaxi and Cybercab scale. Pending. Watch: Paid Robotaxi rides without safety drivers in many cities and rising Cybercab output pass; regulatory stops or slow output fail.
- Recent events
- 2026-10-21: Tesla reported Q3 2026 results. Revenue was $28.0 billion, flat from a year earlier. Operating income fell to $718 million from $1.62 billion, and net income fell to $787 million, or $0.22 per diluted share. Regulatory credit revenue fell to $113 million from $417 million, and energy revenue fell 16% to $2.9 billion. Services and other revenue grew 33% to $4.6 billion. Tesla said that it started the Cybercab and the Tesla Semi in the quarter, and that it expects capital spending above $20 billion in 2026.
2026-10-19: Tesla filed its proxy for the 2026 annual meeting on December 3, 2026. Shareholders vote on three Class I directors, the 2025 executive pay and the auditor.
2026-10-02: Tesla reported Q3 2026 production of 464,391 vehicles and deliveries of 486,532 vehicles. It deployed 13.7 GWh of energy storage.
2026-09-29: Tesla signed $30 billion of unsecured credit facilities: a $20 billion delayed draw term loan to September 2029, an $8 billion revolving facility to September 2031 and a $2 billion 364-day facility. It said that it does not plan to draw on them in 2026.
2026-07-22: Tesla reported Q2 2026 results. Revenue was $28.2 billion, up 26%, but operating income fell to $398 million from $923 million. Net income was $1.11 billion, or $0.32 per diluted share.
2026-04-22: Tesla reported Q1 2026 results. Revenue was $22.4 billion and operating income was $941 million (calculated from the six-month figures in the Q2 10-Q).
2025-11-06: Tesla shareholders approved the 2025 CEO Performance Award for Elon Musk. It gives up to 423.7 million restricted shares in 12 parts, each tied to a market value goal from $2 trillion to $8.5 trillion and to operating goals such as 1 million Robotaxis in operation and 1 million robots delivered.