- Tesla reported Q3 FY2026 revenue of $28.05B against a $28.06B estimate, in line, and EPS of $0.48 against a $0.46 estimate, a 5.5% beat.
- GAAP net income fell to $787M from $1.37B and free cash flow fell to $1.53B from $3.99B.
- Management cut its 2026 capex plan to about $20B from more than $25B.
- Vehicle deliveries fell 2% year over year to 486,532, and automotive revenue declined 3% to $20.6B.
- Active FSD subscriptions rose to 1.74 million from 1.04 million, and the car backlog hit a four-year high.
- Barclays upgraded Tesla to Overweight on Oct. 26 and raised its target to $450 from $370, citing the anticipated SpaceX merger as a key part of the bull case.
- No merger terms exist, and the agenda for Tesla's Dec. 3 annual meeting carries no merger item.
- Tesla traded at 190x forward earnings at the Oct. 27 close, against a five-year average of 108x.
Quotes
“We believe the anticipated merger is now a key part of the Tesla bull case.”
“Non-GAAP diluted EPS was $0.48, compared with $0.50 a year ago”