Tesla Reports Solid Third-Quarter Results as Musk Discusses Potential SpaceX Merger

UPDATE - follow-up to Tesla beats on earnings and sales even as auto revenue declines: Tesla posted better-than-expected third-quarter results after the market closed on Wednesday. Chief Executive Officer Elon Musk revealed that special committees have been formed to discuss a possible merger between Tesla and SpaceX. Musk stated that a merger would need a fifty percent vote of all Tesla shares, which he described as a high hurdle.

Financial Results

Total revenue was flat compared to the previous year, when sales reached twenty-eight billion two hundred forty million dollars. Automotive revenue dropped three percent to twenty billion five hundred sixty million dollars, while energy revenue fell sixteen percent to two billion eight hundred eighty million dollars. Services and other revenue grew thirty-three percent to four billion six hundred ten million dollars. Net income fell twenty-nine percent to seven87 million dollars, or twenty-two cents a share. Capital expenditures more than doubled to three billion seven hundred thirty million dollars due to spending on robotics and artificial intelligence. Free cash flow dropped sixty-two percent to one billion five hundred thirty million dollars.

Operations And Sales

Tesla blamed lower car prices and trouble getting battery supplies for its weak automotive revenue. Active FSD subscriptions rose sixty-seven percent from a year ago to one point seventy-four million. Sales in Canada, Japan, Taiwan, and Australia hit new records, but growth in the main market slowed as Chinese electric vehicle makers like BYD and Xiaomi gained popularity and a federal tax credit ended. Tesla previously reported third-quarter vehicle deliveries of four hundred eighty-six thousand five hundred thirty-two.

Context

Tesla operates as a major American electric vehicle and clean energy company led by Elon Musk. Such corporate discussions involving multiple companies under common leadership often require careful shareholder approval and regulatory review. Major technology investments and shifting battery supply chains regularly impact automotive manufacturing profits.