Tesla tops Q3 estimates as Musk weighs SpaceX merger

Tesla reported better-than-expected third-quarter results on Wednesday, posting revenue of $28.05bn and earnings of $0.48 per share, according to Theguardian. Wall Street had projected $27.9bn and $0.43 per share.

The figures arrived a day after chief executive Elon Musk told SpaceX investors there is “a lot of merit to combining the companies,” per Theguardian. Cnbc reported that special committees at both boards have been formed to discuss a possible tie-up, and that Musk said he thinks a merger would be a good idea but that shareholders must ultimately support it.

Also read: Musk Pledges One SpaceX Share to Every U.S. Child Next Year

Key facts

• Tesla’s third-quarter revenue of $28.05bn and $0.48 EPS beat projections of $27.9bn and $0.43, but revenue slipped from $28.23bn in the prior quarter.
• Musk said a merger would require approval from 50% of all Tesla shareholders, a threshold Cnbc quoted him calling “quite a high hurdle.”
• Cnbc reported Tesla’s third-quarter vehicle deliveries of 486,532, about 2% below the year-ago figure.
• Cryptobriefing reported SpaceX shares rose 9% in premarket trading after quarterly revenue of $14.58bn, up 161% year over year, and its first quarterly profit as a public company.
• Cnbc reported Tesla’s stock is down 14% this year, while Theguardian put the decline at more than 11%.

Auto revenue softens as the pitch shifts to robots and AI

Tesla’s automotive revenue fell 3% year over year, Theguardian reported, and the company has faced rising competition from cheaper Chinese automakers including BYD and Xiaomi, per Cnbc. Musk’s CEO letter framed the quarter around “Super Intelligence (SI), robotics and renewable energy,” language that reflects how much of Tesla’s valuation now rests on projects beyond car sales.

Those projects still have ground to cover. CNBC noted that capital expenditures are expected to top $25bn this year, against about $8.5bn in 2025, with part of that going to a semiconductor factory Tesla is building with SpaceX and Intel in Grimes County, Texas. Tesla’s Optimus robot and Robotaxi service have both hit production and expansion hurdles, and analyst Paul Miller of Forrester told Theguardian that robotaxis are “undeniably carrying passengers, but not yet at anywhere near the levels the company promised.”

Also read: Tesla Q3 Deliveries Beat Estimates at 486,532 Vehicles

Musk also used last week to unveil the Roadster 2, a sports car he said borrows SpaceX technology and can hover and flip using thrusters. Priced above $200,000, it drew his own caveat that it may not be legal in every jurisdiction.

Why it matters

A combined Tesla and SpaceX would fold a public car and AI company into a rocket and satellite business that listed in June and is already profitable, concentrating a large share of Musk’s ventures under one shareholder vote. For Tesla holders, the proposal competes for attention with the operating story: shrinking auto revenue, a stock that has lagged megacap peers this year, and heavy spending on robots, chips and robotaxis. The two outlets also diverge on Tesla’s share performance — Cnbc says the stock is down 14% this year, Theguardian says more than 11% — a reminder that the reporting reflects different points in the trading session.

What to watch

Any formal step by the two boards — agreed terms, a filing or a shareholder vote — would be the clearest signal on the merger, and Cryptobriefing noted prediction markets have shifted expectations toward an announcement by December 31. Investors also pressed for updates on when Tesla’s FSD system becomes fully unsupervised and on the Cybercab.

This article reports corporate developments and is not financial advice; markets and merger outcomes are uncertain.

Written by

Benjamin

Benjamin Carter covers business, finance, and the stock market for StockPil, focusing on the trends and data that matter to everyday investors.

Sources: The Guardian, Cnbc, Cryptobriefing