Tesla beats estimates as car revenue falls 3% and AI spending doubles capex
CNBC breaks down the segments, the FSD subscription numbers and what Musk said about robotaxis and the SpaceX merger talk.
Tesla reported third-quarter adjusted earnings of 48 cents a share on revenue of $28.05 billion, both above LSEG estimates, on October 21. Automotive revenue fell 3% to $20.56 billion and energy revenue fell 16%, while services and other revenue rose 33%. Tesla cited lower average prices and trouble securing battery supplies.
Net income attributable to shareholders fell 29% to $787 million. CNBC reports capital spending more than doubled to $3.73 billion, driven by Optimus robots and other AI work, and free cash flow fell 62% to $1.53 billion. Active FSD subscriptions rose 67% to 1.74 million.
Musk said the driverless Robotaxi fleet should start contributing to results in 2027, and declined to add to his SpaceX merger comments from the day before. Shares slid more than 3% after hours and ended about 3% lower on October 22, per Yahoo Finance.
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Capital expenditure
After exploring Tesla beats on earnings and sales even as auto revenue declines, for the line investors watched most closely, see Capital expenditure.
Wikipedia explains capital expenditure as money a company spends to buy, maintain or improve fixed assets such as buildings, vehicles or equipment.
Wikipedia · Wade · 5 min
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