New Delhi, Oct 22 (SocialNews.XYZ) Texas-based automotive firm Tesla has posted a sharp decline in third-quarter profit even as the electric vehicle maker generated significantly higher cash flow, showing mixed financial performance.
Elon Musk-backed company reported net income of $787 million for the quarter, a decrease of 44 per cent from a year earlier, while revenue was largely unchanged at $28 billion.
However, the company’s free cash flow climbed to $1.5 billion during the quarter.
Tesla also nearly doubled capital expenditure to $4.7 billion that underscores continued investment in new technologies, products and manufacturing capabilities.
Speaking during SpaceX's earnings call earlier this week, Musk said special committees had been established at both companies to evaluate a potential merger.
He described such a transaction as a potentially attractive idea but cautioned that significant hurdles remained before any deal could move forward.
Moreover, he declined to elaborate on the proposal during Tesla's earnings call, leaving investors with limited details on the status of the discussions.
The earnings report comes weeks after Tesla unveiled a revamped version of its long-delayed Roadster sports car at a SpaceX facility in Texas.
During the demonstration, a prototype vehicle travelled along an elevated curved track before briefly lifting off the ground and landing safely, a spectacle that drew comparisons with flying-car concepts.
Separately, SpaceX reported strong quarterly growth with revenue rising 161 per cent year-on-year to $14.58 billion.
During the company's earnings call, Musk reiterated that a merger between SpaceX and Tesla could make strategic sense and confirmed that review committees at both firms had begun assessing the proposal.
Musk also struck an optimistic tone on SpaceX's long-term outlook, saying annual recurring revenue could eventually reach up to $1 trillion as demand for artificial intelligence-related infrastructure expands.
"As crazy as this sounds, $1T in SpaceX revenue in 2028 is no longer impossible," Musk wrote in a post on X.
Source: IANS
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