Tesla's operating margin fell to 2.6% in fiscal Q3 2026 from a higher level a year earlier, while its gross margin rose to 19.6% from 18.0%. The gap is going into operating expenses as Tesla builds products it has yet to sell, and management said those expenses will keep rising until the new products start selling. The twelve-month operating margin stood at 3.5%, well below its 17.0% peak in fiscal Q4 2022. Tesla expects about $20 billion of capital spending in 2026 and held $45.2 billion in cash and short-term investments against $16.4 billion of debt at the end of September 2026. The stock trades at 407 times trailing earnings versus 22.6 times for the S&P 500, while management expects Robotaxi to become a significant part of revenue and profitability in 2027.
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Related tickers and likely impact
TSLA
• NeutralTesla, Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.5T |
| Close on 10/28/2026 | 404.22 |
| Change that session | -0.80% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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