Tesla Watch: Deliveries, FSD, Robotaxi and Musk — 2026-10-24
Tesla’s Q3 2026 earnings revealed a complex picture: while net income dropped 43% due to AI investments, European sales surged nearly 79% in September, making Tesla the top EV brand in the region. Meanwhile, the company confirmed Cybercab customer deliveries could begin by year-end despite ongoing NHTSA investigations into safety compliance and school zone speeding allegations.
Tesla Watch: Deliveries, FSD, Robotaxi and Musk — 2026-10-24
Top developments
Cybercab Deliveries and Expansion Plans
Tesla announced during its Q3 earnings call that it aims to start selling Cybercabs to customers by the end of 2026, although CEO Elon Musk clarified that the vast majority of vehicles will remain under Tesla ownership for robotaxi operations. The company is aggressively expanding its robotaxi footprint, with plans to launch Cybercab services in Dallas next month, making it the first city outside Austin to host the fleet. This expansion follows a rocky first month in Austin, where the service has faced scrutiny over its certification methods.
Q3 Financials: Profit Drop vs. Margin Rebound
Tesla reported Q3 2026 revenue of $28.05 billion, essentially flat year-over-year, but net income fell 43% to $787 million. The decline was attributed to increased spending on AI infrastructure and Optimus robot production, which pressured operating income down by 56%. Despite the profit drop, non-GAAP EPS of $0.48 beat analyst estimates, and gross margins rebounded to 19.6%. Tesla also quietly cut its 2026 capital expenditure guidance from over $25 billion to over $20 billion.
European Sales Surge
Contrary to mixed signals in the US, Tesla’s European sales surged in September, with EU registrations rising 78.6% to 45,866 vehicles. The Model Y and Model 3 were the two best-selling cars in Europe for the month, marking a significant turnaround for the brand in the region. This growth contrasts sharply with a 30.7% decline in US EV sales, driven partly by higher gas prices in Europe and improved consumer sentiment.
FSD Progress and China Approval
Tesla reported that 75% of new Tesla buyers in North America are now opting for Full Self-Driving (FSD) software, with total FSD subscriptions reaching 1.74 million. In China, Tesla is actively negotiating with regulators for broader FSD approval, though the process remains slow due to intense competition from local players like BYD and Huawei. Musk stated that Tesla is working to secure FSD approval in the EU by Q1 2027.
Local view
In China, local media highlighted the Shanghai Gigafactory’s record performance, with September deliveries exceeding 95,000 vehicles, a 10.7% month-over-month increase. Domestic sales in China also hit a 2026 high of approximately 65,000 units, up 29.5% from August. However, Chinese analysts remain skeptical about FSD’s competitive edge, noting that local autonomous driving technology is advancing rapidly.
In Germany, reports indicate Tesla plans to submit documents for a new production hall in Grünheide in December, aiming to increase annual capacity towards one million vehicles. Local stakeholders are watching closely as Tesla’s German operations stabilize, with the factory’s expansion potentially creating up to 42,000 jobs in the region.
Context & numbers
- Q3 Deliveries: Tesla produced over 464,000 vehicles and delivered over 486,000 vehicles in Q3 2026.
- Energy Storage: The company deployed 13.7 GWh of energy storage products in Q3.
- European Market Share: Tesla’s share in the EU rose to 4.7% in September, driven by the 78.6% sales jump.
- FSD Penetration: 75% of new Tesla buyers in North America selected FSD, generating an estimated $1 billion in annualized revenue from subscriptions.
On the radar
- NHTSA Investigation: Tesla has until October 30 to respond to NHTSA regarding its certification methods for the Cybercab, following an investigation opened in September.
- School Zone Accusations: NHTSA is reviewing a petition claiming Tesla robotaxis exceeded speed limits in school zones in Texas; Tesla has issued a software update to address the behavior.
- Optimus Production: Tesla is targeting a production rate of 20,000 Optimus robots per week, though current output remains significantly lower.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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