Tesla reports quarterly results after Musk raises possible SpaceX merger

Tesla reported its third-quarter results after Elon Musk raised the possibility of combining the carmaker with SpaceX, his space and artificial-intelligence company. No further questions on the proposal were taken during Wednesday’s investor call.

Musk, who leads both companies, said he had already given all the information he should provide about a potential deal. On Tuesday, he called a combination a “good idea” and said it would have “a lot of merit.”

Tesla’s quarterly results

Tesla posted $28.05 billion in third-quarter revenue and earnings of $0.48 per share. The figures exceeded Wall Street expectations of $27.9 billion in revenue and $0.43 per share, but revenue fell from $28.23 billion in the previous quarter. Automotive revenue declined 3% from a year earlier.

The boards of Tesla and SpaceX have created special committees to examine a possible merger, Musk said on Tuesday. The terms have not been agreed, and the transaction would require approval from 50% of all Tesla shareholders.

Share pressure and new products

Tesla shares are down more than 11% this year amid competition from cheaper Chinese automakers, although the stock has recovered some ground since news of the possible merger emerged. The company is increasingly focused on robotics, autonomous driving and artificial intelligence alongside vehicle sales.

Musk unveiled the Roadster 2 electric sports car last week, saying it uses SpaceX technology. The vehicle is priced above $200,000; during a demonstration, a remote-controlled version drove up a ramp, hovered and landed.

Paul Miller, a principal analyst at Forrester, said Tesla had achieved notable results but had missed some of its leaders’ ambitious promises. He said Robotaxi was carrying passengers but remained far below the levels Tesla had promised, while the Optimus robot faced production hurdles.