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Tesla beats on earnings and sales even as auto revenue declines
Tesla beats third-quarter 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, beating analyst estimates.
- Automotive revenue fell 3% to $20.56 billion due to lower average sales prices and battery supply difficulties.
- Elon Musk stated that Tesla and SpaceX boards have formed special committees to discuss a potential merger.
Why it matters. Tesla's stock slid more than 3% in extended trading following the report, while shares are down 14% so far this year.
Tesla reported third-quarter earnings per share of 48 cents adjusted and revenue of $28.05 billion, both exceeding analyst estimates. However, automotive revenue declined 3% to $20.56 billion, which the company attributed to lower average sales prices and battery supply issues. CEO Elon Musk also noted that special committees from Tesla and SpaceX boards have been formed to discuss a potential merger.
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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 on earnings and sales even as auto revenue declines
Tesla reported better-than-expected third-quarter results after the bell on Wednesday, with adjusted earnings of 48 cents per share versus the 43 cents analysts expected. Revenue reached 28.05 billion dollars, slightly above estimates, but automotive revenue fell 3 percent from a year earlier to 20.56 billion dollars. Net income attributable to common shareholders plunged 29 percent to 787 million dollars as the company spent heavily on Optimus humanoid robots and other artificial intelligence projects. For ordinary drivers, Tesla said uptake of its 99-dollar-per-month supervised self-driving subscription grew sharply, with active subscriptions up 67 percent from a year earlier to 1.74 million. The company plans to give some customer cars access to unsupervised self-driving around the second quarter of next year. Chief Executive Elon Musk said the robotaxi fleet, including the Cybercab, should start contributing noticeably to Tesla's financials by the third or fourth quarter of next year.