Tesla revenue holds near $28 billion while quarterly profit and deliveries decline

Tesla reported third-quarter revenue of $28.0 billion, essentially unchanged from a year earlier. Automotive revenue declined 3% to $20.6 billion and energy-generation and storage revenue fell 16% to $2.9 billion, while services and other revenue increased 33% to $4.6 billion.

GAAP net income attributable to common shareholders fell 43% to $787 million, or 22 cents per diluted share. Operating income declined 56% to $718 million even though gross profit increased 9%. Tesla's operating expenses rose 39% to $4.8 billion as the company continued investing in artificial intelligence, robotics and manufacturing programs.

Tesla produced 464,391 vehicles, up 4%, but delivered 486,532, a 2% year-over-year decrease. Active Full Self-Driving subscriptions increased 67% to 1.74 million. The company said battery availability remained a constraint on increasing vehicle production and that its passenger-vehicle backlog was the largest in four years.

Operating cash flow reached $6.3 billion and free cash flow was $1.5 billion, even as quarterly capital expenditures more than doubled to $4.7 billion. The mix of flat revenue, lower profit and high investment makes cash generation an important counterweight in the quarter, but Tesla's statements about future autonomy, batteries and factories remain plans rather than completed performance.

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