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NEWS
Tesla Tries To Reverse Tech's Tumble

It was a down day for the major indexes, with tech leading lower as rates rallied further. The only two sectors in the green were real estate and utilities, signaling some caution as investors awaited Tesla’s earnings after the bell. Luckily, the electric vehicle maker beat estimates, which may help buoy stocks into tomorrow. 👀

Today's issue covers Tesla’s earnings beat, a sweet commodity setup, and more noteworthy pops and drops from the day. 📰

Here’s the S&P 500 heatmap. 2 of 11 sectors closed green, with real estate (+0.98%) leading and consumer discretionary (-1.57%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $NEP, $CSTM, $MOH, $VICR, $DBVT 📉 $ALGN, $NAK, $EDSA, $AZUL, $CAVA*

*If you’re a business and want to access this data via our API, email us.

EARNINGS
Tesla Breaks Its Quarterly Losing Streak 👍️ 

The electric vehicle (EV) giant’s adjusted earnings per share of $0.72 topped the $0.58 expected, though revenues of $25.18 billion came in shy of the $25.37 billion consensus estimate.

Revenue rose 8% YoY, with profit margins boosted by $739 million in automotive regulatory revenue during the quarter. Automotive revenue rose 2% YoY to $20 billion, roughly flat since 2022. Energy generation and storage revenue rose 52% YoY to $2.38 billion, and other revenue jumped 29% YoY to $2.79 billion. 📊 

Tesla boasted that it reached 7 million vehicles as of Oct 22 and that its Cybertruck has become the third-best-selling fully electric vehicle in the U.S., behind only the Model 3 and Model Y. Despite the issues (and people laughing at its design), the company sold more than 16,000 Cybertrucks in the U.S. during Q3.

CEO Elon Musk said his “best guess” is that vehicle growth will reach 20% to 30% next year, driven by “lower cost vehicles” and the “advent of autonomy.” 📈 

While Tesla isn’t currently licensed to operate a commercial transportation network or ride-hailing service in California, it says it’s testing a ride-hailing app that some employees in California have used this year. It plans to roll it out for public use sometime next year.

Overall, the company produced 469,796 vehicles and delivered 467,890 during Q3, rising 6% YoY but failing to meet analyst estimates. “Despite ongoing macroeconomic conditions, we expect to achieve slight growth in vehicle deliveries in 2024,” but focused on its goal of “launching” more affordable models in the first half of 2025 to help drive demand. 🚗 

Looking ahead, Musk said all of the company’s cars moving forward would be autonomous, noting that the “majority” of the 7 million vehicles produced by Tesla so far are “capable of autonomy.”

Autonomy is Tesla’s future, but we still don’t know exactly when. For now, investors are taking this quarter’s earnings beat and upbeat forecast in stride, with shares rising 12% after hours. Still, Stocktwits sentiment remains in ‘bearish’ territory as the skeptics bet on continued roadblocks for the company’s goals. 🤔 

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