Tesla's third-quarter net income attributable to shareholders fell 43% from a year earlier to $787 million, or 22 cents per share, while revenue was essentially flat at $28 billion, slightly below the analyst average of $28.3 billion. Excluding certain items, earnings per share of 48 cents beat expectations by 3 cents. Free cash flow was positive at $1.5 billion despite heavy AI spending, though it was down 62% year over year, and capital spending more than doubled to $4.7 billion. Tesla cut its 2026 capital spending forecast to about $20 billion from more than $25 billion, while automotive gross margin excluding regulatory credits rose to 18.1% from 15.4%. Musk said Tesla and SpaceX have formed special committees to explore a possible merger, with no terms agreed, and Tesla shares fell 3.2% after hours after rising 3.6% in the regular session.
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TSLAElon MuskSpaceXmergers and acquisitionsearnings
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Related tickers and likely impact
TSLA
▼ Likely negativeTesla, Inc.
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.4T |
| Close on 10/21/2026 | 386.55 |
| Change that session | +3.44% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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