Tesla beats on earnings and revenue

Tesla reported adjusted earnings per share of forty-eight cents versus forty-three cents estimated, and revenue of twenty-eight point zero five billion dollars versus twenty-seven point nine billion estimated.

Auto revenue falls despite overall beat

Tesla's automotive revenue declined three percent year-over-year to twenty point fifty-six billion dollars in the quarter. The company blamed lower average sales prices and battery supply constraints.

Energy revenue drops, services surge

Energy revenue fell sixteen percent to two point eighty-eight billion dollars. Services and other revenue climbed thirty-three percent from a year ago to four point sixty-one billion dollars.

Profitability plummets on AI spending

Net income fell twenty-nine percent to seven hundred eighty-seven million dollars. Capital expenditures more than doubled to three point seventy-three billion dollars, driven by Optimus robots and artificial intelligence initiatives.

FSD subscriptions surge to 1.74 million

Tesla's FSD Supervised subscriptions increased sixty-seven percent year-over-year to one point seventy-four million. Uptake grew by twenty percentage points from the second quarter.

Unsupervised FSD coming next year

Ashok Elluswamy, Tesla's vice president of Autopilot, said the company plans to give customer cars access to FSD Unsupervised systems around the second quarter of next year.

Robotaxi fleet to contribute in 2027

Musk said the driverless Robotaxi fleet will start contributing to financials in twenty twenty-seven. The fleet includes three hundred sixty-two Model Y Robotaxi and four hundred forty-nine Cybercab vehicles authorized for driverless operations in Texas.

“It's not like going to move the needle this quarter. I think it starts to become noticeable in Q2 and then probably a big deal by Q3 or Q4 of next year.”

Musk predicts robotaxi dominance

Barring regulatory intervention and protectionism, Musk predicted Tesla will end up doing a majority of all passenger miles on Earth in any country where it is allowed to operate freely.

SpaceX merger committees formed

Musk told SpaceX investors a day before Tesla's earnings that merging his two companies would be a good idea. Both boards have formed special committees to discuss a possible tie-up.

“I feel like I'm tap dancing through a minefield.”