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How Tesla (TSLA) makes money
Tesla (TSLA) made $28.0B of revenue in the third quarter 2026 (Q3 2026), -0.2% from a year earlier. Total revenues from sales and services brought in $27.6B (98%); Automotive leasing brought in $353M (1%); Automotive regulatory credits brought in $113M (0%). Of every dollar of revenue, 20¢ was left as gross profit, 3¢ was left as operating profit, 3¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Total revenues from sales and services | $27.6B | 98.3% | -0.5% | +1% |
| ↳ Automotive sales | $20.1B | 71.6% | +0.4% | -1% |
| ↳ Services and other | $4.6B | 16.4% | +0.5% | +33% |
| ↳ Energy generation and storage sales | $2.7B | 9.8% | -8% | -16% |
| ↳ Energy generation and storage leasing | $136M | 0.5% | -4% | +1% |
| Automotive leasing | $353M | 1.3% | -3% | -18% |
| Automotive regulatory credits | $113M | 0.4% | -23% | -73% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $28.0B | 100.0% |
| Cost of revenue | $22.6B | 80.4% |
| Gross profit | $5.5B | 19.6% |
| Operating expenses | $4.8B | 17.0% |
| Operating profit | $718M | 2.6% |
| Income tax | $152M | 0.5% |
| Net earnings | $804M | 2.9% |
| Operating cash flow | $6.3B | 22.3% |
| Free cash flow | $1.5B | 5.5% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $28.0B | -0.2% |
| Q2 2026 | $28.2B | +26% |
| Q1 2026 | $22.4B | +16% |
| Q4 2025 | $24.9B | -3% |
| Q3 2025 | $28.1B | +12% |
| Q2 2025 | $22.5B | -12% |
| Q1 2025 | $19.3B | -9% |
From Tesla's 10-Q filed Oct 22, 2026 (on EDGAR).
Questions
How does Tesla make money?
Tesla (TSLA) made $28.0B of revenue in the third quarter 2026 (Q3 2026), -0.2% from a year earlier. Total revenues from sales and services brought in $27.6B (98%); Automotive leasing brought in $353M (1%); Automotive regulatory credits brought in $113M (0%). Of every dollar of revenue, 20¢ was left as gross profit, 3¢ was left as operating profit, 3¢ was left as net earnings.
What is Tesla's biggest business?
Total revenues from sales and services: $27.6B in the third quarter 2026, 98% of revenue, +1% from a year earlier.
What is Tesla's profit margin?
Net earnings were $804M, 2.9% of revenue, in the third quarter 2026; the operating margin was 2.6%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.