Tesla Cybercabs Could Reach Customers by End of 2026, but Elon Musk Says Vast Majority Will Be TSLA-Owned

Tesla reported a 43% drop in Q3 net income to $787M, with revenue flat at $28B. Free cash flow was $1.5B, beating expectations. The company is exploring a merger with SpaceX, according to Elon Musk. Tesla cut its 2026 capital spending forecast to $20B. Shares fell 3.2% in after-hours trading.

Elon Musk endorsed a potential merger between SpaceX and Tesla, raising concerns about regulatory scrutiny and shareholder interests. The deal, valued at $3.5 trillion, is in early discussions. Tesla reported a $140 million loss on SpaceX holdings. Musk's dual CEO role and past acquisition issues add to the complexity.

Meta Platforms reported Q3 2026 revenue of $64.6B, up 26% YoY, and raised its 2026 capex guidance to $135B-$145B, causing shares to rise 2% in extended trading. Tesla reported Q3 2026 adjusted EPS of $0.48 on revenue of $28.05B but cut its 2026 capex outlook to $20B, leading to a 3.3% drop in post-market trading. The contrasting capex guidance from both companies impacted stock futures, with Nasdaq-100 and S&P 500 futures both down.

Elon Musk's public endorsement of a potential $3.5T merger between Tesla and SpaceX has raised concerns among insiders, who worry it may invite shareholder scrutiny and delay the process. The companies are exploring various transaction structures, including an all-stock deal. Musk, who owns significant stakes in both, acknowledged he cannot be involved in the discussions.

Tesla shares fell in after-hours trading despite beating Q3 earnings expectations. Revenue was $28.05B, with adjusted earnings of 48 cents per share. Investors questioned FSD subscription figures and disclosures, while analysts highlighted subscription growth and AI development. Automotive revenue declined 3% to $20.56B.

Elon Musk's public comments about a potential $3.5 trillion merger between Tesla and SpaceX have raised concerns among insiders, who fear it may invite shareholder scrutiny and delay the process. The companies are exploring various transaction structures, including an all-stock deal. Musk, who owns significant stakes in both companies, acknowledged he cannot be involved in the discussions.