Tesla's Automotive Revenue Fell 3%, and Energy Generation and Storage Tumbled 16%. Should Investors Still View Tesla as a Car Company?

Tesla (TSLA) stock fell 3% on Thursday despite beating Q3 earnings estimates. The company reported adjusted earnings of $0.48 per share, exceeding expectations of $0.45. Tesla cut its 2026 capex budget to $20 billion and delayed full production of Optimus robots by at least a year. Automotive gross margin rose to 18.1%, and free cash flow reached $1.5 billion. GAAP net income fell 43% year-over-year to $787 million.

Tesla and Nvidia are reportedly investing a combined KRW3.7 trillion (US$2.8 billion) to support Samsung Electro-Mechanics in expanding its ABF substrate production facilities in South Korea, according to the report.

Elon Musk has initiated discussions about a potential merger between SpaceX and Tesla, forming special committees to explore the deal. SpaceX reported a profitable quarter with $4.4B earnings and $14.6B revenue, driven by AI. Tesla shares rose 2% on merger news. Both companies are collaborating on AI and chip projects. Analysts debate the merger's likelihood and terms, with some predicting high chances of completion.

Tesla deployed 13.7 GWh of energy storage in Q3, with gross margins improving to 33.1%. CEO Elon Musk stated that nearly all 2027 Megapack capacity is sold out due to high demand from AI data centers. The company is expanding production to meet this demand. Morgan Stanley raised its price target on TSLA to $410.

Fort Bend County approved tax incentives for Tesla's $10.1B solar cell factory in Texas, part of 'Project Crystal Sun'. The project, targeting 2029 operations, aims for 9,712 jobs. Tesla is still considering other locations. Tesla's Q3 2026 earnings met expectations, with $28.046B revenue and $0.48 EPS. FSD software attach rate rose to 75% in North America, driving demand and revenue growth. Tesla also began volume production of its Semi truck and expanded Robotaxi services.

Tesla (TSLA) reported Q3 earnings of $0.48 per share, beating estimates but down from last year. Revenue was $28.04B, slightly above expectations. Operating income fell 56% due to rising expenses. Free cash flow was $1.53B. A potential merger with SpaceX (SPCX) is being explored, which could impact TSLA's valuation and growth prospects.