Tesla Reports Better-Than-Expected Third-Quarter Earnings Despite Automotive Revenue Decline
· Business · CNBC
Tesla reported better-than-expected third-quarter results after the bell on Wednesday, driven by an adjusted earnings per share of 48 cents against an estimated 43 cents. Total revenue reached $28.05 billion, edging past analyst estimates of $27.9 billion. However, revenue in Tesla's core automotive business declined 3% from a year earlier to $20.56 billion. Energy revenue dropped 16% to $2.88 billion during the quarter. The earnings report follows CEO Elon Musk's statement on a SpaceX quarterly call that a merger between his two companies is under discussion by special boards.
Why it matters
The earnings beat offers a financial cushion for Tesla as its core automotive revenue contracts and electric vehicle competition intensifies. Investors are closely watching how Musk's proposed corporate tie-up with SpaceX might reshape the company's capital structure.
Read the original report — CNBC
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