Tesla profit tops estimates as cash flow stays positive

Tesla Inc.’s third-quarter profit beat estimates, potentially assuaging concerns about the electric vehicle maker’s increased investment into new areas such as robots and AI. Adjusted earnings per share were 48 cents in the period, the company said Oct. 21 in a statement, surpassing the average of analyst estimates. Revenue was narrowly below estimates in the period, while cash flow was positive. The market had anticipated cash burn of nearly $5 billion. Tesla shares rose 1.2% at 4:23 p.m. in extended trading in New York. The results give Tesla some breathing room as it chases CEO Elon Musk’s futuristic vision of self-driving cars and humanoid robots. The company, which is also spending to boost output of cars and batteries, could soon come together with rocket-maker SpaceX after Musk said this week that his two biggest companies are exploring a merger. Tesla had free cash flow of $1.5 billion in the period, calling into question the company’s earlier pledge to ramp up capital expenditures to more than $25 billion this year. Gross margin, a measure of profitability, was 19.6%, above estimates. Tesla’s initiatives are currently supported by a narrow product lineup that consists of only three vehicles: the Y and 3 models and the polarizing Cybertruck. Competition for EVs is also heating up. TSLA Quotes by TradingView See more transportation stock listings Investors want more clarity on Tesla’s plans. The company has targeted spending of $25 billion and has lined up $30 billion of new loans and credit lines to underpin its growth. On SpaceX’s investor call Oct. 20, Musk confirmed that…

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