Tesla has surpassed Wall Street expectations with its third-quarter financial results for 2026, announcing revenue of $28.05 billion and earnings of $0.48 per share. Analysts had anticipated revenue of $27.9 billion and earnings of $0.43 per share. Despite this financial success, the company noted a slight dip in revenue from the previous quarter’s $28.23 billion, and a 3% decline in automotive revenue compared to the same period last year.
During Tesla’s earnings call, CEO Elon Musk hinted at the possibility of merging Tesla with SpaceX, his aerospace and artificial intelligence venture. Musk mentioned that there is potential merit in such a merger, yet he did not provide further details. Previously, he had indicated that special committees from both companies’ boards were evaluating the proposal, though no terms have been agreed upon. Approval from at least 50% of Tesla’s shareholders would be necessary for the merger to proceed.
Tesla continues to expand its horizons beyond electric vehicles, venturing into artificial intelligence, autonomous driving, robotics, and renewable energy. However, the company faces challenges with its Robotaxi service, which is struggling to grow its fleet and enter new markets. Additionally, the development of its Optimus humanoid robots has met with production obstacles.
Musk remains optimistic about the future of humanoid robots, asserting that they could become one of the world’s largest product categories. Yet, Tesla is also contending with increasing competition from Chinese electric vehicle manufacturers offering lower-priced alternatives, as it seeks to achieve its goals in emerging technologies.