Tesla profit falls 43% as it weighs merger with SpaceX

euronews.com —

Tesla reported a 43% drop in third-quarter profit to $787 million, though stronger-than-expected cash flow beat analyst forecasts, as the company explores a possible merger with SpaceX. Revenue was flat at $28 billion, slightly missing expectations. Tesla generated $1.5 billion in free cash flow despite heavy spending on AI and robotics, surprising analysts who expected a cash burn. The company cut its 2026 capital spending forecast to about $20 billion and saw improved automotive gross margins of 18.1%. Musk confirmed both companies formed independent director committees to explore a merger, with no terms agreed. Tesla shares fell 3.2% in after-hours trading, while Musk's wealth briefly topped $1 trillion.


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