Tesla beats on earnings and sales even as auto revenue declines
Tesla reported better-than-expected third-quarter results.
TL;DR
- Tesla's Q3 adjusted earnings per share were 48 cents, exceeding the estimated 43 cents.
- Total revenue reached $28.05 billion, surpassing the estimated $27.9 billion.
- Automotive revenue decreased by 3% year-over-year to $20.56 billion.
- Energy revenue fell 16% to $2.88 billion, while services and other revenue increased by 33% to $4.61 billion.
- Net income attributable to common shareholders decreased by 29% to $787 million.
- Capital expenditures more than doubled to $3.73 billion, driven by investments in Optimus robots and AI initiatives.
- Free cash flow dropped 62% year-over-year to $1.53 billion.
- Active FSD subscriptions grew 67% to 1.74 million, with plans for FSD (Unsupervised) access in Q2 next year.
- Elon Musk mentioned that the Cybercab robotaxi fleet is expected to start contributing to financials in 2027.
- Tesla is building a semiconductor factory in Texas with SpaceX and Intel.
- Elon Musk suggested a potential merger between Tesla and SpaceX.