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Tesla Q3 results: full order books, but declining figures

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Tesla Q3 results: full order books, but declining figures

Tesla's revenue is stagnating, with the US electric car manufacturer witnessing a significant drop in profits during the third quarter. However, the Americans' car business is not doing poorly - order books are full. The reasons lie elsewhere.

Tesla is currently struggling to grow its automotive business. Revenue from the automotive division fell by three per cent year-over-year between July and September – to $20.56 billion. Only through ancillary business areas has Tesla managed to match last year’s total revenue ($28 billion). The result: zero per cent growth, but no decline either.

Tesla also roughly achieved the $28 billion revenue mark in the second quarter of this year. However, it is notable that in Q3 2025 and Q2 2026, Tesla reported billion-dollar profits at similar revenue levels. This is no longer the case: GAAP net income plummeted to $787 million in the last quarter – a massive decline of 43 per cent compared to the same quarter last year.

Importantly, Q3 2025 should be treated with caution as a basis for comparison, as it was influenced by a surge in pull-forward purchases ahead of the expiration of US incentives, which artificially inflated vehicle sales. Additionally, revenue from CO2 certificates (“regulatory credits”) – long a lucrative income source for Tesla at the expense of other automakers – has declined. These fell from $417 million in Q3 2025 to just $113 million now, which already explains a significant portion of the profit drop.


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