TSLA · 10-Q · 2026Q3 · Full report

Research and Development Increase

Tesla, Inc. · 2026-10-22 · Importance 77 · Surprise 82

R&D expense increased $2.45 billion, or 53%, to $7.08 billion for the first nine months of 2026. Third-quarter R&D expense increased $1.13 billion, or 69%, to $2.76 billion. The increase was driven by SI programs, Optimus, silicon development, battery technologies and new vehicle programs, along with $511 million of higher stock-based compensation for the nine-month period. R&D increased from 7% to 9% of nine-month revenue and from 6% to 10% of third-quarter revenue, creating a material profitability headwind while Tesla expands its product roadmap.

Key facts

• R&D expenses as a percentage of revenue increased from 6% to 10% in the three months ended September 30, 2026 compared to the three months ended September 30, 2025. source
• Research and development expense was $2,761 million for the three months ended September 30, 2026, an increase of $1,131 million, or 69%, compared to the three months ended September 30, 2025. source
• Tesla invested in expanding Cortex onsite training clusters at Gigafactory Texas and is expanding manufacturing to include semiconductor and solar fabrication. source
• R&D expenses increased $2.45 billion, or 53%, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to increases in costs related to SI and other programs and increases in stock-based compensation of $511 million for the nine months. source