Tesla reported third-quarter results on Wednesday, October 21, that beat estimates even as its car business shrank.
Adjusted earnings were 48 cents a share, above the 43 cents expected, and revenue was $28.05 billion, just over a $27.9 billion estimate. Automotive revenue fell 3% from a year earlier, to $20.56 billion. Energy revenue fell 16%, to $2.88 billion. Net income fell 29%, to $787 million. Spending is the other half of the story: capital expenditure more than doubled, to $3.73 billion, and free cash flow fell 62%, to $1.53 billion.
Tesla said production of its Optimus robot has started an early ramp in Fremont. The stock edged up after the close and is still down 14% this year. Talk of a SpaceX merger remains a discussion, not a deal, and these figures do not set a car price.
Does beating the earnings estimate make a Tesla cheaper to buy? No. Tesla announced no price cut. Auto revenue fell while cash went into robots and artificial intelligence.