Tesla's third-quarter R&D expenses jumped 69% year over year to $2.76 billion, pushing operating profit down 56% to $718 million, even though automotive gross margin improved to 18.5% from 17%. Gross profit rose about $440 million, but R&D grew by $1.13 billion, and higher selling, general and administrative costs also weighed on profit. Tesla attributed the R&D increase mainly to AI development, Optimus, silicon, battery technologies, new vehicles and higher stock-based compensation. Separately, the company expects more than $20 billion in 2026 capex, which uses cash upfront and affects earnings through depreciation over time. Operating profit rose from $398 million in Q2 to $718 million in Q3 partly due to a one-time tariff refund, yet remained significantly lower than a year earlier.
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TSLAearningselectric vehiclesartificial intelligence
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Related tickers and likely impact
TSLA
▼ Likely negativeTesla, Inc.
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.5T |
| Close on 10/29/2026 | 403.29 |
| Change that session | -0.23% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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