Tesla Revenue Beats, Profit Drops Amid Possible SpaceX Merger
Tesla beat Wall Street's third-quarter revenue estimates on Wednesday. Higher deliveries and energy storage growth lifted sales, while AI spending cut into profit.
- $28.05 billion in revenue, versus $28.10 billion a year earlier.
- $1.7 billion in net income, which The Verge reports fell 4%.
- 486,532 vehicles delivered, beating the roughly 461,100 analysts expected.
- $1.53 billion in free cash flow; analysts had expected cash burn.
Why it matters: Tesla's car business faces newer, cheaper rivals, while it relies on the aging Model 3 and Model Y. US demand fell after federal EV tax credits expired.
- Energy storage sales are offsetting auto weakness, driven by data center demand.
- Tesla says current tariffs hurt its energy unit more than autos.
How 6 sources split on this story
Where they split: Outlets differ on emphasis: whether the quarter shows a rebound that beat expectations or revenue that has stalled.
Left coverage, 2 sources: The left focuses on flat revenue, falling sales and merger talk, and questions Tesla's product promises.
Right coverage, 2 sources: The right frames the quarter as a beat on revenue and deliveries, with AI spending weighing on profit.
What’s next: Musk said Tesla and SpaceX formed special committees to weigh a merger. He called the idea meritorious but not a certainty.
- Tesla says its robotaxi service will expand to Dallas next.
- European regulators are expected to vote on wider driver-assist approval this year.
- Will a Tesla-SpaceX merger move forward, and on what terms?
- Will the redesigned Roadster reach production in 2028 as Tesla promised?
- Can robotaxis and Optimus robots produce meaningful revenue?
