Tesla profit slides 44 per cent despite free cash surge
Tesla reported third-quarter profit of $US787 million, down 44 per cent from the previous year.
Tesla reported a 44 per cent profit decline for the third quarter. Net income fell to $US787 million from the year-earlier period.
Revenue stayed roughly flat at $US28 billion. Revenue missed analysts' targets slightly.
The company surprised analysts with strong free cash flow. Tesla generated $US1.5 billion in money left after paying for investments.
Profit margins improved despite concerns that sales discounts would squeeze profitability. Elon Musk revealed that Tesla and SpaceX are exploring a possible merger.
He cautioned that many hurdles remain before a deal could happen. Tesla sold nearly 490,000 vehicles last quarter.
This recovered from a long sales slump.
Why it mattersTesla's profit drop reflects changing market conditions and heightened investor scrutiny of Musk's expanding commitments.
AustraliaTesla owners and investors in Australia follow the company's financial health as it grapples with competition and market pressure.
Corroborated bythenightly.com.au
✓ Claims checked against the source. checked 5 h ago
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