$TSLA - TESLA BEATS EARNINGS AS CASH FLOW SMASHES EXPECTATIONS
Tesla delivered a mixed Q3, but profitability and cash flow surprised sharply to the upside.
Adjusted EPS: $0.48 vs. $0.44 expected
Revenue: $28.05B vs. $28.13B expected
Gross margin: 19.6% vs. 17.8% expected
Free cash flow: +$1.53B vs. -$4.99B expected
FSD subscriptions surged to 1.74 million, while Optimus production began in Fremont.
The key takeaway: Strong margins, positive cash flow and accelerating FSD adoption offset a 56% decline in operating income.
Source: Tesla Q3 2026 Earnings