# 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.
- Title: Tesla Q3 Profit Drops as SpaceX Merger Talks Begin | Shortify
- Summary: 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…
- Keywords: tesla, spacex, elon musk, q3 profit, merger talks, cash flow, news, local, Profit, Drops, Merger, Talks
- Source: Seattletimes — https://seattletimes.com/business/teslas-q3-profit-drops-as-it-prepares-for-possible-merger-with-musks-other-public-company-spacex
- Read time: 1 min
- Topics: tesla, spacex, elon musk, q3 profit, merger talks, cash flow, news, local
## 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.
## Key takeaway

Tesla reported $787 million Q3 profit down 44% from prior year but generated $1.5 billion cash flow as Musk signals possible SpaceX merger.