$TSLA Q3 numbers are a reality check:
• Revenue flat at $28B (auto sales actually down 3%)
• Net income cut nearly in half — $787M vs $1.4B last year
• Operating margin compressed from 5.8% to 2.6%
• Free cash flow dropped 62% because capex more than doubled to $4.7B
This is what happens when you're spending aggressively on AI/infrastructure while your core car business isn't growing and margins are shrinking. The bet is that capex today turns into profits tomorrow.
Maybe it does. But right now, the income statement and cash flow statement are telling a very different story than the stock price.
• Revenue flat at $28B (auto sales actually down 3%)
• Net income cut nearly in half — $787M vs $1.4B last year
• Operating margin compressed from 5.8% to 2.6%
• Free cash flow dropped 62% because capex more than doubled to $4.7B
This is what happens when you're spending aggressively on AI/infrastructure while your core car business isn't growing and margins are shrinking. The bet is that capex today turns into profits tomorrow.
Maybe it does. But right now, the income statement and cash flow statement are telling a very different story than the stock price.