Tesla beats third quarter financial estimates despite drop in automotive revenue

Tesla reported better than expected third quarter financial results after the market closed on Wednesday, according to CNBC Tech. The company beat expectations for both earnings and sales despite experiencing a drop in its core automotive revenue. Shares of the company fell by more than 3% during extended trading following the report. [1]

The earnings release arrived one day after Tesla Chief Executive Officer Elon Musk spoke on a quarterly call for SpaceX, CNBC Tech reported. Musk stated on that call that a merger between his two companies would be a good idea, noting that special committees have been formed by the boards of both firms to discuss a potential transaction. [1]

During the SpaceX call, Musk remarked that he felt like he was tap dancing through a minefield when asked about the prospective deal, according to CNBC Tech. Musk later addressed the potential merger during his opening comments on the Tesla earnings call. [1]

Tesla is an American multinational automotive and clean energy company headquartered in Austin, Texas. The firm designs, manufactures, and sells battery electric vehicles, solar panels, and energy storage devices ranging from residential units to grid-scale systems. [2]