Tesla Q3 Earnings Beat Overshadowed by Musk’s Caution on Robotics and Chip Costs
Tesla reported third-quarter 2026 adjusted earnings of 48 cents per share on $28.05 billion in revenue, exceeding analyst expectations. Despite the beat and a return to positive free cash flow of $1.53 billion, shares fell 3.1% in after-hours trading to $374.35. Investors reacted negatively to CEO Elon Musk’s cautious outlook on the Optimus robot and the Terafab chip venture, which he estimated could cost over $100 billion. Musk also reiterated that a potential merger with SpaceX remains uncertain, noting that both companies have formed special committees to explore the deal but that no guarantee of completion exists.