Tesla Posts $1.5B Surprise Free Cash Flow as SpaceX Merger Committees Form
TSLA sits 31% above its 52-week low of $297.38.
Summary
Tesla delivered a surprise $1.5 billion in free cash flow for Q3, a sharp swing from the $4.3 billion cash burn analysts had modeled. Capex actually fell to $4.7 billion from $5.8 billion last quarter, easing the spending fear that hammered the stock after Q2. Revenue was flat and deliveries slipped 2% year over year to 486,532 vehicles, so the cash beat is doing the heavy lifting here. The bigger story is Musk saying on Tuesday's SpaceX call that a Tesla-SpaceX merger 'would be a good idea,' with special committees at both companies studying it; SpaceX shares rose 7% on the comment. Tesla holders now face a governance question on top of the earnings debate — watch for any formal committee disclosure or filing on merger talks.
At the time of this announcement, TSLA was trading at $390.34 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $1.5T. The 52-week trading range was $297.38 to $498.83. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.