Tesla posts stronger-than-expected quarter as Musk raises SpaceX merger possibility
Tesla reported third-quarter revenue and earnings per share above Wall Street forecasts, though automotive revenue declined from a year earlier. CEO Elon Musk again mentioned a possible combination with SpaceX, saying more had already been said and declining further questions. Any such merger would need approval from half of Tesla’s shareholders.
Tesla's third-quarter revenue reached $28.05bn, with earnings per share of $0.48, exceeding analyst estimates of $27.9bn and $0.43. Revenue nevertheless slipped from the prior quarter's $28.23bn, and car-related revenue was 3% lower than a year earlier.
Musk told SpaceX investors that combining the companies had appeal; both boards formed committees with a special mandate to examine terms, though no agreement was reached. Such a deal would require backing from half of Tesla's shareholders. Tesla's stock has dropped more than 11% this year, recovering somewhat after merger speculation emerged. He did not take additional questions on the topic during Tesla's earnings call.
A Tesla-SpaceX combination could affect investors through share approvals and valuation swings, employees through governance and job uncertainty, and customers through product priorities. It may also draw regulatory scrutiny because of Musk's overlapping roles and the scale of both firms. For the wider public, the merger discussion could shape expectations about AI, robotics and space-linked technology, though concrete effects remain uncertain until terms emerge.