Tesla to report earnings as Musk floats merger with SpaceX
Electric carmaker Tesla reports third-quarter results on Wednesday, after CEO Elon Musk suggested combining it with his rocket and AI company SpaceX. Both boards have set up special committees to examine the idea.
Tesla, the US electric vehicle maker, will publish its third-quarter earnings on Wednesday, 21 October, with investors focused on chief executive Elon Musk's idea of merging the company with SpaceX, his rocket and artificial intelligence business. A deal could affect shareholders of both companies and shape Tesla's future direction.
On a call with SpaceX investors on Tuesday, Musk said there was a lot of merit to combining the companies. He said the boards of both businesses had formed special committees to explore a potential merger, but no agreement on terms had been reached. The transaction would need approval from 50% of all Tesla shareholders.
Analyst expectations
Wall Street expects Tesla to report revenue of $27.9bn and earnings of 43 cents per share. That would be slightly below the previous quarter's revenue of $28.23bn.
The year has been difficult for the company: its share price is down more than 11% in 2026 and it faces growing competition from cheaper Chinese carmakers. Shares appear to have recovered somewhat since news of the possible SpaceX deal.
Roadster 2 and unmet promises
Last week Musk unveiled the Roadster 2, an electric sports car that he said uses SpaceX technology to "basically fly like a rocket". At a demonstration at a SpaceX facility in Texas, a remote-controlled version drove up a steeply curved ramp, then used jet-like thrusters to flip, hover and land. The car is priced from $200,000 upwards. Musk added that he was not sure it was legal in all jurisdictions.
Vehicle sales matter less to Tesla's market performance than before, as the company has shifted toward robotics, autonomous driving and AI. However, its Optimus robot has faced production hurdles, and its Robotaxi driverless taxi service has struggled to scale its fleet and enter new cities.
Musk had said that "probably half the population of the US" would use the Robotaxi service by the end of 2025, and forecast producing as many as 1m Optimus robots a year. Those targets have not been reached. Paul Miller, principal analyst at market research firm Forrester, said Tesla robotaxis are carrying passengers but not near the levels promised.
