Tesla profit falls 43% as revenue holds near $28 billion

Tesla reported third-quarter net income of $787 million, down about 43% from $1.373 billion a year earlier, as revenue remained nearly unchanged and spending increased on research and capital projects. Revenue for the quarter was $28.046 billion, compared with $28.095 billion in the same period last year. Operating income fell 56% to $718 million from $1.624 billion, according to the company’s quarterly filing. Diluted earnings per share declined to 22 cents from 39 cents. Capital expenditures rose to $4.73 billion from $2.78 billion a year earlier. Research and development spending increased 69% to $2.76 billion, while operating expenses climbed to $4.776 billion from $3.430 billion. Free cash flow fell to $1.531 billion from $3.990 billion. Tesla’s vehicle deliveries declined 2% year over year to 486,532, while production increased 4% to 464,391. The company said battery availability constrained its ability to raise output. It also cited lower vehicle average selling prices, fewer deliveries and reduced revenue from regulatory credits as pressures on revenue. Automotive revenue decreased 3% to $20.56 billion, while energy generation and storage revenue fell to $2.881 billion...