Tesla shares rise after earnings surprise in after-hours trading, while EV business remains weak

[Financial News]  

Tesla reported better-than-expected third-quarter results on the 21st (local time). However, its core electric vehicle business turned in a weak performance, with revenue declining.
Tesla shares, which ended regular trading up 3.4%, rose more than 1.4% further in after-hours trading.
According to CNBC, Tesla's third-quarter revenue was $28.05 billion, topping the market forecast of $27.9 billion.
Adjusted earnings per share (EPS) also came in at $0.48, above the market estimate of $0.43.
However, revenue from its core electric vehicle business fell 3% from the same period a year earlier to just $20.56 billion.
Revenue from the energy business, including batteries, also plunged 16% to $2.88 billion.
Meanwhile, Tesla has been gaining amid hopes of a merger with SpaceX.
Elon Musk, CEO of both companies, said on an investor conference call the previous day, while announcing SpaceX's quarterly results, that combining the two companies was “a good idea.” He added that the boards of both companies had each formed a special committee to discuss the possibility of a merger.

[email protected] Song Kyung-jae Reporter