Tesla's Q3 profit drops as it prepares for possible merger with Musk's other public company, SpaceX
NEW YORK (AP) — Tesla reported a decline in profit for the latest quarter as it prepares for a possible merger with Elon Musk’s other big business, SpaceX.
The electric vehicle maker reported third-quarter net income of $787 million, or 22 cents per share, down 44% from the year-earlier period. Excluding certain items, though, earnings per share of 48 cents beat Wall Street analyst expectations by 3 cents.
Revenue was basically flat at $28 billion, falling slightly short of analysts’ forecast.
In a SpaceX conference call Tuesday, Musk said a long-rumored merger with Tesla might be in the works. He said that special committees had been set up at each company to discuss a possible combination, while cautioning that many hurdles remain.
Tesla stock rose 1.6% in after-hours trading after climbing 3.6% during the regular trading session.
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