Tesla tops forecasts as car revenue falls and AI spending climbs
Tesla's third-quarter results beat analyst estimates compiled by LSEG, even as car revenue fell 3%, CNBC reported. CNBC said revenue was $28.05 billion and adjusted earnings were 48 cents a share. Net income for common shareholders fell 29% to $787 million as spending on AI and robots rose.
Tesla's third-quarter results beat Wall Street estimates, according to CNBC and Yahoo Finance. Tesla reported adjusted earnings of 48 cents a share, CNBC reported. Analysts polled by LSEG had expected 43 cents. Revenue was $28.05 billion, compared with LSEG's estimate of $27.9 billion. Yahoo Finance said revenue came in just below the Bloomberg consensus of $28.13 billion.
The figures below come from Tesla's earnings deck, as reported by CNBC. Revenue in Tesla's core car business fell 3% from a year earlier to $20.56 billion. Energy revenue fell 16% to $2.88 billion. Services and other revenue rose 33% to $4.61 billion. Total revenue a year earlier was $28.24 billion.
Tesla blamed lower average car prices and trouble getting enough batteries to fill a backlog of orders, CNBC reported.
Net income for common shareholders fell 29% to $787 million, or 22 cents a share, from $1.11 billion, CNBC reported. Capital spending more than doubled to $3.73 billion as Tesla spent more on robots and AI. Free cash flow fell 62% to $1.53 billion, after turning negative in the second quarter. Other outlets gave different figures. Yahoo Finance put capital spending at $4.732 billion, and The Verge reported net income of $1.7 billion.
Tesla said its Optimus robot has started production at its factory in Fremont, California, Yahoo Finance reported. Active subscriptions to its FSD (Supervised) driving system rose 67% to 1.74 million, CNBC reported.
CNBC reported that the stock was little changed in extended trading. As of 5:22 Wednesday evening Eastern time, Yahoo Finance market data showed shares at $384.43 after hours, down 0.5%. They had closed at $386.47, up 3.4%.
The results came a day after Elon Musk said Tesla and SpaceX boards had formed special committees to discuss a possible merger. "Do I think it would be a good idea? Yes," Musk said on SpaceX's earnings call, according to CNBC and Yahoo Finance. "But at the end of the day, the shareholders have to be supportive of this," he said, CNBC reported.
What we know: Tesla beat LSEG estimates on earnings and revenue even as car and energy revenue fell.
What we don't: How long Tesla's heavy spending on AI and robots will weigh on its profits.
Where outlets agree CNBC and Yahoo Finance report that Tesla posted adjusted earnings of 48 cents a share on $28.05 billion in revenue, beating Wall Street's earnings estimates.
Where they differ CNBC says revenue beat LSEG's estimate of $27.9 billion, while Yahoo Finance says it came in just below the Bloomberg consensus of $28.13 billion.