Tesla (TSLA) Q3 2026 earnings report
Tesla reported lower-than-expected automotive revenue and a 29% drop in net income for Q3 2026, leading to a stock decline. CEO Elon Musk also addressed ongoing discussions regarding a potential merger between Tesla and SpaceX.
Why it matters
The financial performance and potential corporate restructuring of Tesla have significant implications for the automotive and AI sectors.
Tesla reported better-than-expected third-quarter results after the bell on Wednesday, even as automotive revenue dropped. The stock slid more than 3% in extended trading.
Here's how the company did, compared with estimates from analysts polled by LSEG:
Tesla's earnings report lands a day after CEO Elon Musk told investors on SpaceX's quarterly call that it would be a "good idea" for his two companies to merge, and said the boards at both have formed special committees to discuss a possible tie-up.
"I feel like I'm tap dancing through a minefield," Musk said on the call, responding to a question about a potential merger.
Musk addressed the matter in his opening comments on the Tesla call, but didn't provide any additional information.
"I think I said everything that should be said yesterday," he said.
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