# Tesla Posts $1.5 Billion in Free Cash Flow as Musk Confirms SpaceX Merger Review

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/37726
Published: 2026-10-22T10:27:16.000Z
Updated: 2026-10-22T10:27:16.000Z
Section: Business

> Adjusted earnings topped expectations even as revenue came in slightly below forecasts. No merger agreement has been reached.

Tesla generated $1.5 billion in free cash flow in the third quarter of 2026, beating expectations for a large cash outflow and putting its cash generation at the center of its results.

Adjusted earnings per share came in at $0.48, above analyst expectations. Revenue was slightly below forecasts, while gross margin reached 19.6%, ahead of estimates. The free cash flow result contrasted with market expectations for nearly $5 billion in cash outflow. Tesla shares rose about 1.2% in after-hours trading following the results.

Tesla had planned more than $25 billion in capital spending this year. It also arranged about $30 billion in new loans and credit lines for expansion across vehicles, batteries, autonomous driving and robotics.

Tesla CEO Elon Musk said Tesla and SpaceX each formed a special committee to examine a potential merger. No agreement has been reached, and a transaction may require support from a majority of Tesla shareholders.