TSLA · 10-Q · 2026Q3 · Full report

FX / Currency Headwinds

Tesla, Inc. · 2026-10-22 · Importance 17 · Surprise 24

Tesla identifies foreign-exchange movements as a source of volatility because it holds significant intercompany balances and generally does not hedge foreign-currency risk. During the nine months ended September 30, 2026, the weakening of the U.S. dollar against foreign currencies increased automotive sales revenue, while the same movement adversely affected automotive cost per unit. Foreign-currency gains and losses can fluctuate materially from period to period, particularly across balances denominated primarily in euros and Chinese yuan.

Key facts

• Balances held in foreign currencies had a U.S. dollar equivalent of $5.97 billion as of September 30, 2026 and consisted primarily of euros and Chinese yuan. source