Tesla Slides 3.3% After Hours as Flat Q3 Revenue and SpaceX Merger Doubts Weigh
TSLA sits 26% above its 52-week low of $297.38.
Summary
Tesla shares fell 3.32% after hours to $373.65 following a mixed Q3 report and investor skepticism about merger talks with SpaceX. Revenue came in flat year over year at $28.05 billion, below the $28.3 billion to $28.13 billion consensus, and net income dropped 43% to $787 million, or $0.22 a share, as AI and robotics R&D weighed on profits. The quarter still had bright spots: adjusted EPS of $0.48 beat the $0.44 to $0.45 consensus, free cash flow of $1.53 billion crushed expectations of a $4.5 billion to $4.9 billion outflow, automotive gross margin rebounded to 18.1% from 16.3%, and full-year CapEx guidance was cut to $20 billion from $25 billion. Deliveries of 486,532 beat Bloomberg's 463,000 estimate but were down 2% year over year, and the loss of the $7,500 federal EV tax credit contributed to a nearly 20% sales slump. The overhang is the SpaceX tie-up: Musk confirmed special committees are exploring a merger that would need a 50% shareholder vote, and investors worry it would dilute Tesla stock to fund the capital-intensive space company while distracting from the core EV business.
At the time of this announcement, TSLA was trading at $373.65 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 negative market sentiment and an importance score of 7 out of 10. Source: Coinpedia.