Tesla Profit Drops, Revenue Flattens Amid Possible SpaceX Merger

Tesla beat Wall Street's third-quarter revenue estimates on Wednesday. Higher deliveries and energy storage growth lifted sales, while AI spending cut into profit.

• $28.05 billion in revenue, versus $28.10 billion a year earlier.
• $1.7 billion in net income, which The Verge reports fell 4%.
• 486,532 vehicles delivered, beating the roughly 461,100 analysts expected.
• $1.53 billion in free cash flow; analysts had expected cash burn.

Why it matters: Tesla's car business faces newer, cheaper rivals, while it relies on the aging Model 3 and Model Y. US demand fell after federal EV tax credits expired.

• Energy storage sales are offsetting auto weakness, driven by data center demand.
• Tesla says current tariffs hurt its energy unit more than autos.

How 12 sources split on this story

Where they split: Outlets differ on emphasis: whether the quarter shows a rebound that beat expectations or revenue that has stalled.

What’s next: Musk said Tesla and SpaceX formed special committees to weigh a merger. He called the idea meritorious but not a certainty.

• Tesla says its robotaxi service will expand to Dallas next.
• European regulators are expected to vote on wider driver-assist approval this year.
• Will a Tesla-SpaceX merger move forward, and on what terms?
• Will the redesigned Roadster reach production in 2028 as Tesla promised?
• Can robotaxis and Optimus robots produce meaningful revenue?