Tesla reported a second straight quarterly profit decline, with net profit falling to $787 million in the third quarter from $1.4 billion a year earlier. Sales reached $28 billion, roughly flat from the prior year and slightly below analyst expectations. The drop reflects heavy spending on self-driving technology, humanoid robots and other new ventures, which have yet to generate meaningful revenue.
Chief executive Elon Musk said Tesla and SpaceX are exploring a merger that would combine cars, rockets, robots, satellite internet and artificial intelligence under one entity. The move comes as Tesla ramps up production of the Semi electric truck and the Cybercab, a driverless vehicle without a steering wheel. The company also unveiled a new Roadster, though production is not expected until 2028.
Analysts note that Tesla still relies heavily on the Model Y and Model 3 for revenue. Despite rising competition from Hyundai and General Motors, Tesla held 54 percent of the U.S. electric vehicle market in the third quarter. Meanwhile, G.M. reported a $3.3 billion third-quarter profit, more than double the prior year, as it scaled back losses from electric vehicle investments.
Source: New York Times Business · Summarized by HeadlinesBriefing