Tesla Beats Earnings Despite Auto Revenue Drop — SkimNews
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- Tesla reported adjusted EPS of 48 cents and $28.05 billion in revenue, beating analyst estimates of 43 cents and $27.9 billion
- Tesla saw automotive revenue decline 3% year-over-year to $20.56 billion, citing lower average sales prices and battery supply constraints
- Tesla's services and other revenue surged 33% to $4.61 billion, offsetting declines in auto and energy segments
- Elon Musk confirmed on the earnings call that Tesla and SpaceX boards have formed special committees to explore a potential merger
- Tesla's active FSD (Supervised) subscriptions reached 1.74 million, a 67% increase from a year earlier, with uptake growing by 20 percentage points from Q2
- Ashok Elluswamy said Tesla plans to grant select customers access to FSD (Unsupervised) around Q2 next year
- Elon Musk stated that Tesla's driverless Robotaxi fleet, including 362 Model Y and 449 Cybercab vehicles authorized in Texas, will start contributing financially in 2027
Why it matters: Tesla beat earnings expectations despite falling auto revenue and a 29% drop in net income, showing services and AI bets are reshaping its financial profile. With $3.73 billion in capital expenditures—more than double last year—and free cash flow down 62%, the company is prioritizing long-term automation plays over near-term profitability, signaling a strategic pivot that could redefine its valuation model if Robotaxi or FSD gains traction.
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