Why Was Tesla Stock Moving on Oct 22, 2026?
Tesla beat third-quarter 2026 profit forecasts and cut its 2026 spending plan to about $20 billion, then Bloomberg and Reuters reported new details of SpaceX merger talks. TSLA rose 1.51% in the first minute after the results before turning lower after hours.
- Tesla reported third-quarter 2026 adjusted EPS of $0.48 against 43 cents expected and cut its 2026 capital spending plan to about $20 billion.
- TSLA closed up 3.41% at $386.47 on October 21, rose 1.51% in the first minute after the results, then fell 2.9% after hours.
- On October 22 Bloomberg reported a push for a SpaceX deal in the first half of 2027, and Reuters reported an all-stock holding-company option.
Tesla stock is moving on two stories that arrived within hours of each other. On Wednesday, October 21, 2026, Tesla reported third-quarter results that beat profit forecasts and cut its 2026 capital spending plan to about $20 billion from more than $25 billion. Early on Thursday, October 22, Bloomberg and Reuters reported new details of talks to combine Tesla with SpaceX, including a possible structure in which both companies would sit under a new holding company.
TSLA closed the regular session on Wednesday up 3.41% at $386.47 on hopes for a merger. The results reached the MoveSurge news feed at 16:06:34 ET, and the stock rose from $388.21 to $394.06 in the first minute of after-hours trading, a gain of 1.51%, and stood at $391.09 fourteen minutes later. It then turned lower, and Investing.com reported the shares down 2.9% at $375.19 after hours.
| Third quarter 2026 | Result | Comparison |
|---|---|---|
| Revenue | $28.05 billion | $27.9 billion expected (LSEG) |
| Adjusted EPS | $0.48 | $0.43 expected (LSEG) |
| GAAP EPS | $0.22 | $0.39 a year earlier |
| GAAP net income | $787 million | $1.37 billion a year earlier |
| Gross margin | 19.6% | 18.0% a year earlier |
| Operating margin | 2.6% | 5.8% a year earlier |
| Free cash flow | $1.53 billion | $1.09 billion outflow in the second quarter |
| 2026 capital spending plan | About $20 billion | More than $25 billion before |
What the results showed
Adjusted earnings per share (EPS) of $0.48 beat the 43 cents analysts expected, and gross margin rose to 19.6% from 18.0% a year earlier. Operating income still fell 56% to $718 million, and the operating margin narrowed to 2.6% from 5.8%. Free cash flow swung to $1.53 billion from an outflow of $1.09 billion in the second quarter. Tesla said battery supply is limiting how many cars it can build, while its order backlog for passenger vehicles is the largest in four years. The company did not say which projects will get less money under the lower spending plan.
What Bloomberg and Reuters reported about a SpaceX merger
- October 20, 2026: On SpaceX's earnings call, Elon Musk said a combination "would be a good idea" but that special committees of independent directors at both companies are handling it, because he is a conflicted party. He said a deal would need the support of holders of 50% of all Tesla shares outstanding.
- October 21, 2026: TSLA closed up 3.41% at $386.47 and SpaceX closed up 7.79% at $159.31.
- October 22, 2026: Bloomberg reported a push to reach a deal in the first half of 2027 so that it can close while President Donald Trump is in office, and put the companies' combined value at about $3.7 trillion. Reuters reported that the options under discussion include SpaceX buying Tesla or both companies merging under a new holding company, possibly in an all-stock deal, and that Musk's public support could delay the talks by several weeks.
Why SolarCity comes up
Reuters said people involved in the talks see parallels with Tesla's purchase of SolarCity, an all-stock deal worth about $2.6 billion completed in November 2016. Shareholders sued over Musk's role in that deal, and the Delaware Supreme Court upheld a ruling in his favor on June 6, 2023. Tesla has since moved its incorporation to Texas, and bylaws effective May 15, 2025 require a 3% stake to bring a lawsuit on the company's behalf. Musk owns about 20% of Tesla.
Earlier Tesla news
- October 2, 2026: Tesla reported 486,532 third-quarter deliveries, above the 461,974 consensus it compiles from analysts, and 13.7 GWh of energy storage deployments.
- September 29, 2026: A filing showed $30 billion of new unsecured credit facilities, led by a $20 billion three-year delayed-draw term loan.
Why was Tesla stock moving on Oct 22, 2026?
Tesla reported third-quarter 2026 results on October 21 that beat profit forecasts and cut its 2026 capital spending plan to about $20 billion. Early on October 22, Bloomberg and Reuters reported new details of SpaceX merger talks, including a possible all-stock deal under a new holding company.
Are Tesla and SpaceX merging?
No deal has been agreed. Special committees at both companies are reviewing a combination, and Bloomberg reported a push to reach a deal in the first half of 2027. Musk said it would need support from holders of 50% of all Tesla shares outstanding.
Did Tesla beat earnings in the third quarter of 2026?
Yes on profit. Adjusted EPS was $0.48 against 43 cents expected, and revenue of $28.05 billion was slightly above the $27.9 billion forecast, according to LSEG. GAAP EPS fell to $0.22 from $0.39 a year earlier.
How much will Tesla spend on capital projects in 2026?
Tesla now plans about $20 billion of capital spending in 2026, down from more than $25 billion. It did not say which projects will get less money.
Sources
-
Tesla Q3 2026 earnings report
— CNBC
Adjusted EPS of $0.48 against 43 cents and revenue of $28.05 billion against $27.9 billion, LSEG consensus.
-
Tesla Q3 2026 financial results
— Electrek
GAAP EPS, gross and operating margins, operating income down 56% to $718 million, and free cash flow of $1.53 billion against a second-quarter outflow.
-
Tesla third-quarter 2026 update (Form 8-K, Exhibit 99.1)
— Tesla via SEC EDGAR
GAAP net income of $787 million against $1.373 billion a year earlier.
-
Tesla cuts annual capex target to $20 billion from $25 billion
— Seoul Economic Daily
The 2026 capital spending plan cut to about $20 billion from more than $25 billion.
-
Tesla outlines $20B 2026 capex while targeting 5 million vehicles a year by 2030
— Seeking Alpha
Independent report of the lower 2026 capital spending plan.
-
After-hours movers: Meta, IBM, TSLA, LRCX
— Investing.com
Tesla down 2.9% at $375.19 after hours.
-
Why Musk wants a Tesla-SpaceX deal before Trump leaves office
— Bloomberg
A push to reach a deal in the first half of 2027 so it can close while Trump is in office; combined value of about $3.7 trillion.
-
Exclusive: Musk's public endorsement of SpaceX-Tesla deal may throw a wrench in talks
— Reuters via WBOW
Structures under discussion, including a new holding company and an all-stock deal; a possible delay of several weeks; parallels with SolarCity.
-
Elon Musk says Tesla-SpaceX merger would be a good idea as companies form special committees
— Fox Business
Musk's remarks on the SpaceX call and the special committees of independent directors.
-
SpaceX stock jumps as Musk talks up a Tesla merger
— CNBC
The 50% of all outstanding Tesla shares needed and Musk's stake of about 20% in Tesla.
-
SpaceX and Tesla boards form special committees to review merger
— TechCrunch
Committees of independent directors formed at shareholders' request; no terms agreed.
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