Tesla Reports $1.53bn Cash Flow Amid Profit Decline

Tesla generated $1.53 billion in free cash flow in the third quarter, surpassing expectations for a cash outflow, even as its profit fell by 43% to $787 million. The company's revenue was reported at $28.05 billion, showing little change from the previous year.

Operating cash flow reached $6.26 billion, with capital expenditure at $4.73 billion, reflecting a 110% increase from the previous year due to ongoing investments in AI, robotics, factories, and energy infrastructure. Tesla's cash, cash equivalents, and short-term investments totaled $45.45 billion at the end of the quarter.

The overall gross margin improved to 19.6%, while the automotive gross margin, excluding regulatory credits, exceeded expectations. However, operating expenses rose by 39% to $4.78 billion, driven by increased research and development spending.

Automotive revenue declined by 3% to $20.56 billion, and vehicle deliveries fell by about 2% year on year to 486,532, contributing to a 56% drop in operating income.