TLDR
- Tesla (TSLA) closed Wednesday at $386.47, up 3%, ahead of its Q3 report.
- Adjusted EPS was 48 cents vs. 43 cents expected.
- Auto revenue fell 3% to $20.56 billion, and net income dropped 29% to $787 million.
- Active FSD subscriptions climbed 67% to 1.74 million.
- Musk expects Robotaxi to add to financials starting in 2027.
Tesla (TSLA) stock ended Wednesday at $386.47, up $12.76 or 3%. The move came before the company reported third-quarter results after the bell.
Tesla posted adjusted earnings of 48 cents a share, beating the 43 cents analysts expected, per LSEG. Revenue was $28.05 billion against $27.9 billion expected.
Barronās called sales just shy of Wall Street estimates, so the revenue beat depends on the source. Revenue was roughly flat from $28.24 billion a year ago.
Extended trading was mixed. CNBC reported a slide of more than 3%, while Barronās had the stock up 1.5% at $392.43.
Profit Takes a Hit
Operating profit was $718 million, well below the $1.4 billion analysts projected. Net income fell 29% to $787 million, or 22 cents a share.
Tesla pointed to higher spending on Optimus humanoid robots and other AI work. Capital expenditures more than doubled to $3.73 billion.
Free cash flow fell 62% to $1.53 billion. It stayed positive after turning negative in the second quarter.
Automotive revenue dropped 3% to $20.56 billion. Tesla blamed lower average selling prices and battery supply problems.
Energy revenue fell 16% to $2.88 billion. Services and other revenue climbed 33% to $4.61 billion.
Automotive gross margin, excluding regulatory credits, was about 18%. That compares with 16% in the second quarter and was about a point better than expected.
Musk Talks SpaceX, Robotaxis and FSD
A day earlier, Musk said on SpaceXās call that a merger would be a āgood idea.ā Boards at both companies have formed special committees to discuss it.
On Teslaās call, Musk said he had āsaid everything that should be said yesterday.ā He had earlier described feeling like he was ātap dancing through a minefield.ā
Active FSD subscriptions rose 67% to 1.74 million, up from 1.48 million last quarter. Tesla says the system is driving demand where it is available.
Musk said the Robotaxi fleet should start adding to financials in 2027. Texas has authorized 362 Model Y Robotaxis and 449 Cybercab vehicles for driverless use.
Third-quarter deliveries were 486,532, about 2% below a year earlier. The stock is down 14% this year.
Some customer cars should get FSD (Unsupervised) around the second quarter of next year. Musk expects Optimus design, reliability and AI issues to be solved around the end of next year.
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