Key facts
- Tesla cut its annual capital expenditure forecast by 20% to about $20 billion.
- The company reported positive free cash flow of $1.53 billion in Q3, against expectations of a cash burn.
- Elon Musk said a merger between Tesla and SpaceX is a "good idea" and special committees are discussing it.
- Tesla's Q3 revenue of $28.05 billion beat estimates of $27.9 billion.
- Tesla's Q3 earnings per share of $0.48 beat estimates of $0.43.
- Tesla's automotive revenue fell 3% from a year earlier.
Tesla reported third-quarter earnings that surpassed Wall Street expectations, with revenue of $28.05 billion and earnings per share of $0.48, beating projections of $27.9 billion and $0.43 respectively. The company also cut its annual capital expenditure forecast by 20% to about $20 billion for 2026 and posted surprise positive free cash flow of $1.53 billion for the quarter. CEO Elon Musk is exploring a potential merger between Tesla and his space venture, SpaceX, stating that special committees from both companies' boards are discussing the deal. However, the reduced spending on AI and robotics raises questions about Tesla's investment in future growth, even as Musk emphasized rapid demand growth for its vehicles.