Tesla has reported financial results for the third quarter of 2026 that surpassed analysts’ expectations, with the company achieving $28.05 billion in revenue and earnings of $0.48 per share. This performance exceeded forecasts of $27.9 billion in revenue and $0.43 per share. Despite this positive result, Tesla’s revenue was slightly down from the previous quarter’s $28.23 billion, and automotive revenue saw a 3% decrease compared to the same period last year.
During the earnings call, CEO Elon Musk raised the prospect of merging Tesla with SpaceX, his aerospace and artificial intelligence company. Musk stated that there is significant potential in such a merger but withheld further details. He mentioned that special committees from both companies’ boards are currently exploring the proposal, though no concrete agreement has been made. For a merger to proceed, approval from at least 50% of Tesla’s shareholders would be necessary.
Tesla continues to broaden its business scope beyond electric vehicles, venturing into artificial intelligence, autonomous driving, robotics, and renewable energy. However, its efforts have not been without challenges. The company’s Robotaxi service has struggled to expand its fleet and operations into additional cities, and the development of its Optimus humanoid robots has faced production hurdles.
Despite these difficulties, Musk remains optimistic about the future of humanoid robots, suggesting they could become one of the world’s largest product categories. Meanwhile, Tesla is encountering increasing competition from Chinese electric vehicle manufacturers, who offer lower-priced alternatives as Tesla strives to maintain its position in the emerging technologies market.