Tesla freezes its sales and its profits plummet by 42% in the third quarter of the year

Tesla reported a net profit of $804 million in Q3, a 42% decrease from last year. Revenue was $28.046 billion, similar to Q3 2025. The company delivered 486,532 vehicles, a 2% decline year-over-year. Unexpected positive cash flow was attributed to lower-than-expected spending on AI and robotics. Capital expenditures were $4.7 billion, below analyst expectations. Tesla is considering a merger with SpaceX, led by Elon Musk. The Model 3 and Model Y accounted for 98% of deliveries. Tesla's robotaxi fleet expanded significantly, and its energy division is growing due to demand for large-scale batteries. Company shares have dropped about 14% this year.