Tesla beats earnings despite auto sales drop — SkimNews
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- Tesla reported adjusted Q3 earnings of 48 cents per share, beating estimates of 43 cents, on revenue of $28.05 billion versus $27.9 billion expected
- Tesla saw automotive revenue decline 3% year-over-year to $20.56 billion, citing lower average vehicle prices and battery supply constraints
- Tesla's services and other revenue surged 33% to $4.61 billion, offsetting declines in car sales and energy segments
- Elon Musk confirmed on Tesla's earnings call that both Tesla and SpaceX have formed special committees to explore a potential merger, referencing comments made the prior day
- Tesla's net income fell 29% to $787 million as capital expenditures more than doubled to $3.73 billion, largely due to spending on Optimus robots and AI development
- Tesla reported 1.74 million active FSD (Supervised) subscriptions, up 67% year-over-year, with plans to roll out FSD (Unsupervised) to customer vehicles around Q2 2025
- Tesla disclosed it operates 362 Model Y and 449 Cybercab vehicles under driverless authorization in Texas, with Musk projecting financial contribution from its Robotaxi fleet starting in 2027
Why it matters: Tesla’s profitability slump and cash flow drop reflect a strategic pivot toward AI and mobility services, not car sales—meaning investors are now betting on Robotaxi and FSD scaling by 2025–2027, not near-term auto margins. The $2.1 billion spending jump signals a high-stakes shift in core business model.
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