Tesla Q3 Profit Slides 44% as Musk Weighs SpaceX Merger

Tesla announced on Wednesday that its earnings declined during the third quarter. The electric vehicle manufacturer recorded a net profit of $787 million, equivalent to $0.22 per share. This figure represents a decrease of approximately 44% compared to the same period last year, when the company posted $1.4 billion in net income, or $0.39 per share.

Excluding certain items, the automaker led by billionaire Elon Musk reported adjusted profits of $1.7 billion, or $0.48 per share, for the period. Revenue also saw a slight contraction, falling by 0.2% to $28.05 billion from $28.1 billion in the corresponding timeframe of the previous year.

Musk Endorses Potential Consolidation

Elon Musk stated on Wednesday that merging Tesla and SpaceX would be a "good idea." He noted that special committees have been established to discuss the matter. Following these comments, shares of both companies rose by 8% in after-hours trading.

On Tuesday, Musk revealed that Tesla and SpaceX are examining the possibility of a merger. He added that the two firms formed special committees at the request of shareholders to study this potential scenario. While speculation about a union between the two entities has persisted for some time, Musk had previously avoided taking a definitive stance on such a move.

Shareholder Approval Requirements

Musk expressed his personal belief that combining the two companies would be advantageous. However, he cautioned that assuming a merger will definitely occur would be an exaggeration. He indicated that any such step would require approval from at least 50% of Tesla's shareholders.