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.

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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Spirit Airlines: Shares soared another 45% on news that it may be discussing a potential combination with Frontier Airlines following its blocked merger with JetBlue earlier in the year. A deal could be part of debt restructuring plans, as Spirit also weighs the bankruptcy option. 🤔

Stride: Shares soared 40% after the technology-based education company reported better-than-expected revenue and earnings. Additionally, the company’s second-quarter and full-year revenue forecasts both topped expectations. Management cited record high enrollment levels as the driver. 🧑‍🏫

Peloton: Shares popped 11% after Greenlight Capital’s David Einhorn said the stock is significantly undervalued, reportedly making the pitch while riding a Peloton. The company is in the middle of its turnaround and looking for a new CEO. 🚴

Winnebago Industries: Shares dove 11% after its fourth-quarter results missed estimates, citing a sluggish retail demand environment and operating inefficiencies within its Winnebago branded businesses. Management expects these challenges to continue, with its fiscal 2025 revenue and earnings outlook below expectations. 🛣

Seagate Technology: Shares fell 8% after the data storage company issued second-quarter guidance that fell short of analyst estimates. Its revenue expectations were lower than anticipated, pressuring shares as analysts question future growth. 📀

Qualcomm: Shares sunk 4% on news that British chip designer Arm Holdings planned to cancel its license agreement with the company. Arm shares also fell 7% on the day. 😬

Boeing: Shares fell 2% after new CEO Kelly Ortberg said the company must focus on its core business during her first conference call. Boeing’s over 32,000 striking machinists will vote on a new contract proposal today. Meanwhile, it wants to raise billions in equity or debt after losing over $6 billion last quarter. ✈

IBM: Shares dipped 3% after its consulting and infrastructure unit revenues came up short of expectations. Adjusted earnings per share managed to top expectations thanks to cost cutting, which will be necessary as management expects revenue growth of just 2% during the fourth quarter. 💻

Hilton: Shares fell 2% after the hotel giant missed third-quarter revenue forecasts despite record travel levels continuing in the U.S. and globally. The light quarter and “modestly slower macro trends, weather impacts, and unfavorable calendar shifts” caused management to lower its full-year revenue forecast. 🏨

ServiceNow: Shares dipped 2% after the enterprise software maker delivered third-quarter earnings (+27% YoY) and revenue (+22% YoY), which topped estimates. Management’s guidance for current quarter key metrics beat expectations marginally but still underwhelmed the street. 💻

After taking a bet on sugar futures as they approached support in late August, the Stocktwits community is once again looking for further upside in this commodity.

Technical analysts say the recent consolidation is a classic “bull flag” pattern, allowing prices to reset after a strong run and set up for their next leg higher. A move out of this pattern would target the 2023 highs between 26 and 28 through year-end. 😋

Economic data: Chicago Fed National Activity Index (8:30 am ET), Initial/Continuing Jobless Claims (8:30 am ET), Fed Hammack Speech (9:45 am ET), S&P Global Composite PMI (9:45 am ET), New Home Sales (10:00 am ET), Kansas Fed Composite (11:00 am ET). 📊

Pre-Market Earnings: United Parcel Service ($UPS), American Airlines Group ($AAL), Southwest Airlines ($LUV), Beyond ($BYON), Northrop Grumman ($NOC), Honeywell International ($HON), Valero Energy ($VLO), Dow Inc. ($DOW). 🛏️

After-Hour Earnings: Vale ($VALE), Western Digital ($WDC), Skechers USA ($SKX), Capital Once FInancial ($COF), Edwards Lifesciences ($EW) Boyd Gaming ($BYD), Deckers Outdoor ($DECK), Texas Roadhouse ($TXRH). 🎧

P.S. You can listen to all of these earnings calls and more straight from the Stocktwits app or website. You’ll find them on the calendar page and individual symbol pages once they’re set to begin! We’ll see you there. 👍

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