Tesla reported third-quarter results that beat analyst estimates, even as automotive revenue fell 3% from a year earlier. Net income dropped 29% as spending on Optimus and other AI initiatives climbed, and the shares slipped in after-hours trading.
Tesla beat Wall Street estimates for the third quarter, posting adjusted earnings per share of 48 cents against 43 cents expected by analysts polled by LSEG. Revenue came in at $28.05 billion versus $27.9 billion estimated, according to CNBC.
Auto and energy sales decline
The core business weakened. Automotive revenue declined 3% to $20.56 billion, while energy revenue fell 16% to $2.88 billion. Services and other revenue climbed 33% to $4.61 billion, partly offsetting those declines.
Tesla blamed the weak auto results on lower average sales prices and trouble securing battery supplies to fulfill a backlog of orders. Total revenue was down slightly from $28.24 billion a year earlier.
Profit falls as AI spending rises
Net income attributable to common shareholders fell 29% to $787 million, or 22 cents a share. CNBC tied the drop to a surge in spending on Optimus humanoid robots and other AI initiatives, with capital expenditures more than doubling to $3.73 billion.
Free cash flow fell 62% year over year to $1.53 billion, according to CNBC.
Shares slip after hours
Tesla stock rose 3.41% in the regular session to $386.47, then fell 2.22% after hours to $377.88, according to Investing.com.
Musk comments on a possible SpaceX merger
Elon Musk told investors a day earlier that the boards at both Tesla and SpaceX have formed special committees to discuss a possible tie-up. He said the shareholders have to be supportive of any merger, and that on the Tesla side that means needing a 50% vote of all shares, which he called "quite a high hurdle".
Sources: CNBC, Investing.com
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