Tesla Q3 adjusted EPS of 48 cents outpaces analyst estimates

Tesla reported adjusted earnings of 48 cents per share on revenue of $28.05 billion for the third quarter, beating analyst estimates polled by LSEG of 43 cents per share and $27.9 billion respectively. The results arrive as CEO Elon Musk evaluates a potential corporate merger with SpaceX.

Earnings per Share Outpace Analyst Estimates

• Adjusted earnings per share reached 48 cents, outpacing the 43-cent consensus estimate.
• Total revenue hit $28.05 billion, edging past the $27.9 billion analyst forecast.
• Automotive revenue declined 3% year-over-year to $20.56 billion, while net income fell 29%.

Tesla Net Income Drops 29 Percent

Revenue in Tesla (NASDAQ: TSLA) core automotive business declined 3% from a year earlier to $20.56 billion during the third quarter. Energy revenue dropped more sharply, falling 16% to $2.88 billion. Net income attributable to common shareholders plummeted 29% to $787 million, or 22 cents a share. This compares against $1.11 billion, or 32 cents a share, reported for the same period last year.

Financial Metric	Q3 Reported	Analyst Estimate	YoY Change
Earnings Per Share (Adjusted)	48 cents	43 cents	N/A
Total Revenue	$28.05 Billion	$27.9 Billion	N/A
Automotive Revenue	$20.56 Billion	Not Provided	Declined 3%
Energy Revenue	$2.88 Billion	Not Provided	Declined 16%
Net Income	$787 Million	Not Provided	Plummeted 29%

Special Committees Evaluate Potential SpaceX Merger

The quarterly financial disclosure lands one day after CEO Elon Musk addressed investors on a quarterly call for SpaceX. Musk stated that it would be a good idea for his two companies to combine operations. He confirmed that the boards of directors at both entities have formed special committees to review a possible tie-up.

“I feel like I’m tap dancing through a minefield,” Musk said on the call, responding to a question about a potential merger. “Do I think it would be a good idea? Yes. But at the end of the day, the shareholders have to be supportive of this.”

Musk noted that securing approval on the Tesla side requires a 50% vote of all shares, describing the threshold as quite a high hurdle.

Extended Trading Reaction and Future Guidance

Financial markets absorbed the dual updates of the Q3 earnings beat and the preliminary merger exploration as trading concluded for the day.

Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.

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