Tesla beats earnings projections after Musk floats SpaceX merger plan

Read the original at The Guardian ↗
Cite

Kerr, D. (2026, October 21). Tesla beats earnings projections after Musk floats SpaceX merger plan. The Guardian. https://www.theguardian.com/technology/2026/oct/21/elon-musk-tesla-spacex

Dated from the outlet's own feed. Check the original for its byline.

The Guardian · collected 2026-10-21 · by Dara Kerr

Quick Summary

On Wednesday, Tesla announced better-than-expected third-quarter earnings with revenue of $28.05 billion and earnings per share of $0.48, beating Wall Street projections. During the earnings call, CEO Elon Musk mentioned the possibility of merging Tesla with SpaceX but declined to provide further details, citing ongoing discussions by special committees within both companies. Musk’s comments about the potential merger have sparked investor interest amid a challenging year for Tesla, which has seen its stock price drop over 11% this year due to increased competition and production hurdles in new ventures like robotics and autonomous driving technology.
Written locally by qwen2.5:14b on 2026-10-21, using this article's own text rather than the other coverage of the same event (that is the story summary below).

AI analysis runs on qwen2.5:14b, locally

Story summary

Elon Musk has announced that special committees within both SpaceX and Tesla are exploring the possibility of merging the two companies, potentially creating a $3.5 trillion corporate giant. During a call with financial analysts discussing SpaceX’s quarterly results, which exceeded expectations, Musk stated that while he believes such a merger would be beneficial due to the potential synergies in technology development, there is no certainty and it requires shareholder approval. Both companies' share prices rose following this announcement, reflecting investor optimism about the potential merger's impact on future technological advancements and market dominance. The committees have yet to agree on terms, and Musk has emphasized that any merger would need support from shareholders of both companies.

Written for “SpaceX-Tesla Merger Discussion” on 2026-10-22, grounded in this article and the 10 other(s) covering the same event.
Why this leaning score
This article does not take a side on a contested political question, so it has no leaning score. That is an answer rather than a gap: a match report or a rescue can be warmly or critically written without being left or right, and scoring it anyway is how approval of a subject gets recorded as a political position.
No political leaning scored for article 97740 · logged 2026-10-21

Story

📰 SpaceX-Tesla Merger Discussion
Technology · 11 article(s) covering the same event. Compare every outlet's account →

Compared with similar articles

This article reads unscored and hedges 3% of its claims. Each row says how that neighbour differs.
BBC News · 0.85 cosine similarity
⚖️ leaning not scored 🔴 0% hedged 0 of 9 📰 publisher trust 69
“Both articles report Elon Musk's announcement about considering a merger between Tesla and SpaceX during financial analyst calls.”
The Sydney Morning Herald
⚖️ leaning not scored 🔴 0% hedged 0 of 17 📰 publisher trust 61
“Both articles describe Elon Musk announcing his idea to merge Tesla and SpaceX during public statements made on consecutive days, indicating they refer to the same specific incident.”
South China Morning Post
⚖️ leaning not scored 🔴 0% hedged 0 of 3 📰 publisher trust 64
“Both articles discuss Elon Musk's announcement of exploring a potential merger between SpaceX and Tesla during their respective earnings calls.”
Al Jazeera
⚖️ leaning not scored 🔴 0% hedged 0 of 5 📰 publisher trust 60
“Both articles report on Elon Musk confirming that SpaceX and Tesla are exploring a merger, specifically mentioning a recent announcement or confirmation.”
BBC News
⚖️ leaning not scored 🔴 13% hedged 5 of 39 📰 publisher trust 69
“Both articles discuss Elon Musk's announcement about considering a merger between Tesla and SpaceX, occurring on the same date.”
Semafor
⚖️ Leans left 🔴 20% hedged 1 of 5 📰 publisher trust 60
“Both articles describe Elon Musk announcing the potential merger of SpaceX and Tesla on October 21, 2026.”
Al Jazeera
⚖️ leaning not scored 🔴 0% hedged 0 of 19 📰 publisher trust 60
“Both articles discuss Elon Musk announcing the exploration of a merger between SpaceX and Tesla on the same day.”
New York Post
⚖️ leaning not scored 🔴 9% hedged 2 of 22 📰 publisher trust 66
“Article A reports on Tesla's financial results and their impact, while Article B focuses on Elon Musk's comments about merging Tesla with SpaceX during the earnings call.”
Toronto Star
⚖️ leaning not scored 🔴 0% hedged 0 of 2 📰 publisher trust 63
“Both articles discuss Tesla's Q3 earnings call and Elon Musk mentioning the potential merger with SpaceX on the same date.”
NBC News
⚖️ leaning not scored 🔴 6% hedged 1 of 17 📰 publisher trust 95
“The articles refer to Musk's announcement but occur on different dates and describe separate events (forming committees vs. earnings call discussion).”
How this article was measured signals, leaning charts, publisher record, byline, topics and claims

Signals How these are calculated →

Claims extracted
30
sentences that state something as happening or true
Uncertain
3%
1 of 30 hedged ("reportedly", "may", "according to")
Leaning
not political
takes no side on a contested political question
Publisher signals
66/100
The Guardian's corrections and hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
11
Technology
Same framing elsewhere
1
articles that frame the event the way this one does
Analyzed 2026-10-21 · how these are computed

How this is being covered How these are calculated →

Article leaning vs. publisher reliability
Source leaning vs. consistency

Publisher

The Guardian · 2246 article(s) · 6 correction(s) detected
Running correction rate · 6 correction(s)

Who wrote this

Dara Kerr
8 article(s) here · 1 carrying a prediction
🔮 But they didn’t glean further information after the company announced there would be no questions on the matter.
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🔮 She could see many neighbors’ mailboxes also outlasted the flames.
Also by Dara Kerr
Nothing else under this byline is closely related to this article, so these are simply their most recent.
All 8 articles by Dara Kerr →

Topics

Chinese SpaceX SpaceX. Tesla the Roadster 2

Subjects

Tesla ORG · 10× Musk PERSON · 8× SpaceX ORG · 5× Chinese NORP · 1× Elon Musk PERSON · 1× Forrester ORG · 1× Miller PERSON · 1× Paul Miller PERSON · 1× SpaceX. ORG · 1× Texas GPE · 1×

Narrative

Investors were paying close attention to Tesla’s third-quarter earnings call on Wednesday afternoon, after chief executive Elon Musk floated the idea of merging the car company with his rocket and AI company, SpaceX.
framing: assertive · carried by 1 article(s) · first seen 2026-10-21
🔮 But they didn’t glean further information after the company announced there would be no questions on the matter.
2026-10-21 · The Guardian
Tesla beats earnings projections after Musk floats SpaceX merger plan · assertive framing

Claims (30 extracted, 1 hedged)

Investors were paying close attention to Tesla’s third-quarter earnings call on Wednesday afternoon, after chief executive Elon Musk floated the idea of merging the car company with his rocket and AI company, SpaceX. asserted
Musk → pay → company
But they didn’t glean further information after the company announced there would be no questions on the matter. asserted
company → glean → matter
“With regard to a potential merger with SpaceX, I think I said everything that should be said yesterday,” Musk, the CEO of both companies, said on Tesla’s earnings call. asserted
Musk → think → call
He repeated a phrase he said on Tuesday: “I feel like I’m tap dancing through a minefield.” asserted
I → repeat → minefield
On a call with SpaceX investors on Tuesday, Musk said it would be a “good idea” to combine the two companies and that “there’s a lot of merit” that would come with it. asserted
that → say → it
Musk said on Tuesday that the board of directors for both of his businesses had put together special committees to explore the potential merger, but had not yet reached an agreement on the terms of the transaction. asserted
board → say → transaction
The move would require the approval of 50% of all Tesla shareholders. asserted
move → require → shareholders
On Wednesday, Tesla reported better-than-expected third-quarter earnings, with a reported revenue of $28.05bn and $0.48 on earnings per share. asserted
Tesla → report → share
That beat Wall Street’s projections of $27.9bn in revenue, with $0.43 on earnings per share. asserted
That → beat → share
Still, the company came in at a slightly lower revenue than last quarter, which was $28.23bn. asserted
which → come → quarter
And its automotive revenue dropped 3% from the year prior. asserted
revenue → drop → ?
“We maintained strong momentum on many projects spanning Super Intelligence (SI), robotics and renewable energy that will be critical to building a future of Amazing Abundance,” the company wrote in its report. asserted
company → maintain → report
Despite the stronger-than-anticipated quarter, Tesla has experienced a rough year with falling stock and increased competition from cheaper Chinese automakers. asserted
Tesla → anticipate → automakers
The company’s share price has fallen by more than 11% this year, although it appears to have rebounded some since last week with the news of the possible SpaceX merger. asserted
it → fall → merger
Last week, Musk unveiled the company’s electric sports car, the Roadster 2, which he said uses technology from SpaceX to “basically fly like a rocket”. asserted
he → unveil → rocket
At a demonstration at a SpaceX facility in Texas, a remote-controlled version of the car drove up a steeply curved ramp and then used jet-like thrusters to flip over, hover and land. asserted
version → control → thrusters
The vehicle is priced at upwards of $200,000. asserted
vehicle → price → 200,000
“Flying cars are real … asserted
cars → fly → ?
It can basically fly like a rocket, it can do rolls, crazy gymnastics,” Musk said at the event, adding: “I’m not sure it’s necessarily legal in all jurisdictions.” asserted
it → fly → jurisdictions
During Tesla’s earnings call on Wednesday, he added that the event was “the coolest demo of any product ever”. asserted
event → add → product
Tesla’s vehicle sales are not as crucial to its market performance as they once were, as the company has pivoted towards robotics, autonomous driving and AI. asserted
company → pivot → robotics
Tesla’s Optimus robot has faced production hurdles, however; and its driverless taxi service, Robotaxi, has hit road blocks in scaling its fleet and expanding to new cities. asserted
service → face → cities
“Tesla’s leaders continue to make big claims about autonomous mobility and physical AI. uncertain
leaders → continue → mobility
The company has achieved remarkable things but continues to miss some of its leaders’ bolder bets,” said Paul Miller, a principal analyst for market research firm Forrester. asserted
Miller → achieve → Forrester
“Tesla robotaxis are undeniably carrying passengers, but not yet at anywhere near the levels the company promised.” asserted
company → carry → levels
Musk has long declared the Robotaxi will have near-infinite demand and that “probably half the population of the US” would be using the autonomous ride-hailing service by the end of 2025. asserted
population → declare → 2025
Similarly, the CEO has forecast the manufacture of as many as 1m Optimus robots each year. asserted
CEO → forecast → robots
As Miller pointed out with Musk’s promises, he has failed to reach those lofty targets and rollout has been slow. asserted
rollout → point → targets
Musk once again touted the robots on Wednesday, saying: “I remain convinced that Optimus will be the biggest product on earth and humanoid robots in general will be the biggest product on earth.” asserted
robots → tout → earth
He added that no other company compares to Tesla in developing humanoid robots – this is despite Chinese competitors making vast strides in the technology. asserted
competitors → add → technology
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