Tesla Reports 44% Drop in Q3 Profit Despite Stable Revenue
Teslas Q3 profit plummets by 44% to $787 million, while revenue remains steady at $28 billion.
New Delhi, October 22 (Daily Kiran) : Tesla, the Texas-based automotive giant, has reported a significant decline in its net profit for the third quarter of 2026. The company’s profit fell by 44% year-over-year, amounting to $787 million. In contrast, Tesla’s revenue remained stable at approximately $28 billion during the same period.
Despite the drop in profit, Tesla’s free cash flow improved, rising to $1.5 billion, indicating a healthier cash flow situation for the company. The firm continued to invest in new technologies, product development, and expanding manufacturing capabilities. Capital expenditures nearly doubled, reaching $4.7 billion.
Recently, during an earnings call for SpaceX, Elon Musk revealed that special committees have been formed within both companies to explore a potential merger. Musk described such a deal as strategically appealing but acknowledged the considerable challenges ahead, cautioning that it is premature to draw conclusions.
While Musk did not elaborate on the merger proposal during Tesla’s earnings call, the results come shortly after the unveiling of an advanced version of the long-awaited new Roadster sports car at SpaceX’s Texas facility. A prototype vehicle showcased its capabilities on a steep, winding track, briefly lifting off the ground before landing safely, drawing comparisons to the concept of flying cars.
On a different note, SpaceX has recently reported a robust quarterly performance, achieving $14.58 billion in revenue, reflecting a 161% year-over-year increase. During the SpaceX earnings call, Musk reiterated that a merger with Tesla could be strategically sound, with review committees assessing this possibility.
Musk also expressed optimism regarding SpaceX’s long-term outlook, suggesting that the growing demand for infrastructure related to artificial intelligence could propel the company’s annual recurring revenue to between $500 billion and $1 trillion in the future. He stated on the social media platform X, “While it may sound unbelievable, achieving $1 trillion in revenue for SpaceX by 2028 no longer seems impossible.”
