Tesla profits fall on higher spending as 'Elon Inc.' talk builds
NEW YORK: Tesla reported lower third-quarter profits Wednesday as near-trillionaire Elon Musk’s electric vehicle maker ramped up huge investments in artificial intelligence and other envelope-pushing technologies.
Tesla's third-quarter profits declined in the period, falling 42.7 percent year-over-year to $787 million. Revenue remained relatively flat at $28 billion. The drop in earnings came as Elon Musk's electric vehicle company increased spending on AI, robotics, and autonomous transport technologies. The company also witnessed a decline in revenues from regulatory credits, energy, and storage sectors.
In addition to the profit reduction, Tesla's announcement of special committees at SpaceX and Tesla to discuss a potential merger, dubbed "Elon Inc.," generated considerable buzz. Shares of both companies rose on the news, boosting Musk's wealth back near $1 trillion. The potential merger has drawn attention to the possibility of "Elon Inc.," though the two companies have not agreed on any terms.
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