Tesla's Energy Generation and Storage revenue for Q3 2026 was $2.88 billion, down 16% year-over-year, significantly missing analysts' expectations of $3.91 billion, and was the primary drag on the quarter's total revenue falling short of estimates. However, energy storage deployments increased by 10% year-over-year, and the energy storage business saw record-high order rates and backlog, with gross margin also significantly improving to 33%.