Tesla revenue flattens out as Elon Musk eyes possible SpaceX deal
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Tesla's revenue flattened out in the third quarter, but the company launched robotaxi service and humanoid production while still managing to spend far less than expected.
Why it matters: Investors are scrutinizing AI outlays, with some concerned about the sustainability of the heavy spending that's propping up the economy.
Driving the news: Tesla reported $4.7 billion in capex in the third quarter.
- That was more than double the amount from the same period a year earlier but still far below S&P Capital IQ expectations of $7.8 billion.
Zoom in: The company's revenue declined less than 1%, to $28 billion, missing expectations of $28.2 billion.
- Net income fell 43%, to $787 million, trailing expectations of $925 million.
The big picture: Wall Street's view of Tesla is increasingly focused on its AI ambitions, self-driving car plans and energy storage business — and less on the blocking and tackling of selling EVs to individuals.
- Tesla shares rose 1.7% in after-hours trading.
Tesla also disclosed Wednesday that it has begun initial production of the Optimus humanoid robot, which CEO Elon Musk has described as a world-changing product.
- Musk said on the earnings call that "we still have a lot to get through" with manufacturing but that he expects to achieve a run rate of 20,000 units per week in a year or "maybe a little longer."
- "There's still parts of the design that are changing," he added, but "I remain convinced that Optimus will be the biggest product on earth."
- Tesla also recently began production of the Tesla Semi, launched robotaxi service in Austin, Texas, and unveiled a flying version of the new Roadster sports car.
Yes, but: The company reported its largest backlog of vehicle orders in four years, due largely to limited battery availability.
- The company said it had "made additional progress" on bolstering its battery supply chain.
- Musk said on the call that Tesla is aiming for production capacity of 5 million vehicles per year by 2030.
What to watch: Any movement from Tesla or SpaceX on a potential merger after Musk said Tuesday on SpaceX's earnings call that the two companies have formed special committees to consider a deal.
- He told investors that he's not allowed to be involved in the talks, but he said he thinks it's "a good idea."
- Musk said Wednesday on Tesla's call that "I think I said everything that should be said yesterday."
Editor's note: This story was updated with information from Tesla's earnings call.
