Tesla drops as spending pullback clouds AI, robotics ambitions

Tesla's third-quarter profits have fallen by 42.7 percent to $787 million, compared to the same period last year. The company's revenues remained largely stable at $28 billion. The drop in profits can be attributed to a decline in car sales, as well as a reduction in revenue from regulatory credits and energy storage. Despite a notable increase in spending on research and development, which more than doubled to $4.7 billion, Tesla's bottom line suffered.

The company's spending spree on artificial intelligence, robotics, and autonomous transport has been a key factor in this performance dip. Additionally, Tesla is reportedly in discussions regarding a merger between SpaceX and Tesla, dubbed "Elon Inc." by some analysts. This potential merger could significantly boost the wealth of Elon Musk, who leads both companies.

Musk has also set up special committees at both SpaceX and Tesla to discuss the merger. The report mentions that while the merger is not guaranteed, many believe it is a matter of "when, not if" the two companies will combine.