From Seattletimes · · 1m
Tesla Q3 Profit Drops as SpaceX Merger Talks Begin
Tesla's Q3 profit fell 44% but cash flow surged as Musk hints at SpaceX merger.
In brief
Tesla's Q3 profit fell 44% but cash flow surged as Musk hints at SpaceX merger. Tesla reported $787 million Q3 profit down 44% from prior year but generated $1.5 billion cash flow as Musk signals possible SpaceX merger. Originally reported by Seattletimes.
Tesla Q3 Profit
Tesla reported third-quarter net income of $787 million, or 22 cents per share, down 44% from the year-earlier period.
Cash Flow Surge
Tesla generated $1.5 billion in free cash flow, a measure of cash after investments to keep the business running.
AI Spending Shift
Analysts say Tesla is delaying long-term projects to self-fund AI growth, a key surprise for the quarter.
Musk Signals Merger
Musk said special committees were set up at Tesla and SpaceX to discuss a possible merger, but many hurdles remain.
Stock Reaction
Tesla stock fell 3.2% in after-hours trading after climbing 3.6% during regular trading.
Capital Spending Cut
Tesla cut its full-year 2026 capital spending estimate from $25 billion to $20 billion.
In short
Tesla reported $787 million Q3 profit down 44% from prior year but generated $1.5 billion cash flow as Musk signals possible SpaceX merger.
