Tesla profits drop but top analyst estimates
The company reported slightly lower car sales, falling revenue from regulatory credits and energy storage, and a sharp rise in research and development spending.
Tesla's third-quarter profits fell 42.7% to US$787 million, according to the electric vehicle manufacturer's earnings release. Despite the decline, analysts estimated Tesla would report higher profits for the period. The company's revenue remained flat at US$28 billion, attributed to lower margins from car sales, regulatory credits, and energy storage. However, Tesla's investment in research and development surged, as did capital spending, which more than doubled to US$4.7 billion.
Elon Musk's companies, Tesla and SpaceX, are reportedly in merger talks, potentially reshaping the landscape of tech and aerospace. Tesla CEO Musk revealed the establishment of special committees at both companies to discuss the merger. The proposed integration could encompass artificial intelligence, robotics, and space-based computing. However, Musk has been subject to scrutiny over his optimistic predictions regarding Tesla's self-driving robotaxi venture and SpaceX's Starshield telecom services for Ukraine.
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Also reported by 3 other outlets
- Tesla profits drop but top analyst estimates freemalaysiatoday.com
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