Key Highlights

  • TSLA shares rose 1.20% pre-market to $378.18, up $4.47 from the prior close of $373.71.
  • SpaceX and Tesla have formed independent special committees to evaluate a potential merger.
  • No terms are agreed, and holders of at least 50% of Tesla shares would need to approve a deal.
  • Market estimates point to Q3 revenue near $28 billion and adjusted EPS of $0.44 to $0.45.
  • Free cash flow is expected to be deeply negative, at roughly negative $4.5 billion.

Merger Committees Add a New Catalyst Before Earnings

Tesla (NASDAQ:TSLA) shares rose 1.20% pre-market today to $378.18, a gain of $4.47 from the prior close of $373.71. The move follows Elon Musk saying on the third-quarter earnings call of SpaceX (NASDAQ:SPCX) that both companies have formed independent special committees to evaluate a potential merger. No terms have been agreed, and holders of at least 50% of Tesla shares would need to approve a deal.

Musk called the idea a good one, and some analysts now see 80% to 90% odds of a deal by the end of 2027. SpaceX, which reported revenue growth of 161% in the quarter, is up roughly 8% pre-market.

Q3 Report Expectations: $28 Billion Revenue and Negative Free Cash Flow

Market estimates point to Tesla third-quarter revenue near $28 billion, adjusted EPS of $0.44 to $0.45 and deeply negative free cash flow of roughly $4.5 billion, amid capital spending above $25 billion for 2026.

Tesla closed the prior session at $373.71, within a recent range-bound stretch of roughly $368 to $374. The backdrop remains choppy given AI-trade and interest-rate worries.

Valuation Stays Elevated Against a Wide 52-Week Range

Tesla reports earnings of $1.74 per share, with a forward P/E of 157.32 and a trailing P/E of 346.03. The 52-week range runs from $297.38 to $498.83, and the company has about 134,800 employees.

Next Up: Q3 Report and Merger Panels

Investors will watch the Q3 report for free cash flow and capital spending, and for any update on the special committee process and how Tesla shareholders view a potential combination with SpaceX.