Tesla beats on earnings and sales even as auto revenue declines

Tesla reported third-quarter results that beat estimates despite a 3% drop in automotive revenue to $20.56 billion, according to CNBC. Net income fell 29% to $787 million, or 22 cents per share, while free cash flow plunged 62% to $1.53 billion. The company blamed lower average selling prices and battery supply issues, as capital expenditures more than doubled to $3.73 billion on Optimus and AI spending.

Energy revenue fell 16% to $2.88 billion, offset by a 33% rise in services revenue to $4.61 billion. Full Self-Driving subscriptions grew 67% to 1.74 million, with unsupervised FSD access planned for some customers around the second quarter of next year. Tesla is testing Cybercab robotaxis, with 362 Model Y and 449 Cybercab vehicles authorized for driverless operations in Texas, though Musk said the fleet will not materially affect financials until 2027. Deliveries totaled 486,532, down about 2% year over year.

Musk said Tesla and SpaceX boards have formed special committees to discuss a possible merger. He expects Optimus robot issues to be solved around the end of next year. Tesla reported record auto sales in Canada, Japan, Taiwan, and Australia.

Source

Tesla beats on earnings and sales even as auto revenue declines — CNBC