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Tesla beats on earnings and sales even as auto revenue declines
Tesla beats earnings and sales estimates despite a decline in automotive revenue
Key points
- Tesla reported adjusted earnings per share of 48 cents and revenue of $28.05 billion, both beating analyst estimates.
- Automotive revenue declined 3% to $20.56 billion, while services and other revenue climbed 33% to $4.61 billion.
- Elon Musk announced that special committees from the boards of Tesla and SpaceX have been formed to discuss a potential merger.
Why it matters. Tesla's stock has underperformed its tech megacap peers this year, falling 14% as the company faces battery supply challenges and lower average car sales prices.
Tesla's Q3 results beat estimates despite a drop in automotive revenue. CEO Elon Musk revealed that special committees from both Tesla and SpaceX boards are discussing a potential merger. Musk, however, provided no further details on the matter during Tesla's earnings call. The company's revenue was slightly flat year-over-year, with declines in its core automotive and energy businesses offset by gains in services and other revenue streams.
Latest updates
Tesla beats on earnings and sales even as auto revenue declines
On the earnings call, CEO Elon Musk said the boards of both SpaceX and Tesla have formed special committees to discuss a potential merger. Tesla shares are down 14% so far this year, underperforming all of the company's tech megacap peers. watch now Tesla reported better-than-expected third-quarter results after the bell on Wednesday, even as automotive revenue dropped. The stock slid more than 3% in extended trading. Here's how the company did, compared with estimates from analysts polled by LSEG: Earnings per share: 48 cents adjusted vs. 43 cents estimated Revenue: $28.05 billion vs. $27.9 billion estimated Tesla's earnings report lands a day after CEO Elon Musk told investors on SpaceX's quarterly call that it would be a "good idea" for his two companies to merge, and said the boards at both have formed special committees to discuss a possible tie-up. "I feel like I'm tap dancing through a minefield," Musk said on the call, responding to a question about a potential merger. Musk addressed the matter in his opening comments on the Tesla call, but didn't provide any additional information. "I think I said everything that should be said yesterday," he said. Tesla's revenue was down slightly flat from a year earlier, when the company generated sales of $28.24 billion, according to the earnings deck. In Tesla's core automotive business, revenue declined 3% from a year earlier to .
Tesla beats Q3 earnings estimates as Musk discusses SpaceX merger
Tesla's third-quarter earnings and sales beat analyst estimates, though the company saw a decline in automotive revenue. CEO Elon Musk announced that the boards of Tesla and SpaceX have formed special committees to evaluate a potential merger. Despite the earnings beat, Tesla shares fell more than 3% in extended trading. The stock has underperformed its tech megacap peers, dropping 14% so far this year.
Inside a possible SpaceX-Tesla merger that Elon Musk calls ‘a good idea’
Bringing the companies together would create a single business spanning AI, energy, robotics, communications and transportation, both on Earth and beyond. Elon Musk said that a merger between SpaceX and Tesla would be a “good idea”, adding that special committees had been formed to discuss the possibility. If the deal goes through, the combined company could be worth around $3.5 trillion, making it one of the most valuable companies in the world.Shares of the space and technology company rose 8% in extended trading following the news. Tesla shares also gained 2% after trading slightly lower for several weeks.Musk says SpaceX-Tesla merger is ‘good idea’Speculation about SpaceX acquiring Tesla has grown in recent weeks. Last week, Barclays suggested that an announcement could come before Tesla's annual meeting in December.Musk confirmed the discussions publicly for the first time, telling investors during a conference call, “I think it would be a good idea, but it's really up to the special committees of both companies…Because I'm a conflicted party, I can't actually be in the discussions of the special committees,”.He added that the committees had been formed at shareholders' request. Shareholders would ultimately have to approve any merger."I do think there's a lot of merit to combining the companies as we are pretty much in the superintelligence singularity, and there's a lot .
Musk says Tesla-SpaceX merger would create $3.5 trillion company
Elon Musk said on Tuesday that a merger between Tesla and SpaceX is a good idea, publicly backing a combination that would create one of the most valuable companies in the world, worth about $3.5 trillion. While electric-vehicle maker Tesla and rocket company SpaceX were once seen as largely separate businesses, the lines between them have blurred. Musk has expanded into artificial intelligence, robotics, advanced manufacturing, satellite communications, and computing infrastructure, including data centers. The statement signals Musk's openness to consolidating his business empire. No formal merger proposal or timeline was announced.
SpaceX and Tesla earnings to test Musk's AI spending ambitions as merger talk grows
SpaceX absorbed Elon Musk's xAI in February, months before its June IPO. Spending by Tesla and SpaceX now points toward artificial intelligence as a shared priority. Upcoming earnings from both companies will test investor confidence in Musk's AI spending ambitions. The Hindu reports that merger talk between Musk's ventures is growing. Analysts are watching whether the AI investments translate into revenue. The earnings reports are expected to provide clarity on capital allocation across Musk's companies.