Tesla's earnings a shocking disappointment

Market Overview
Read time 1.4 minutes

Year To Date Performances:

1. For the first time since 2019, Tesla failed to meet earnings and revenue predictions. Their automotive sector posted earnings of $19.63 billion, with an additional $1.56 billion from their energy generation and storage segment in the recent quarter. The portion from regulatory credits surged to $554 million in Q3, a significant increase from $282 million in the preceding quarter and $286 million year-over-year. Their net earnings for the quarter stood at $1.85 billion, translating to 53 cents per share. There was a notable 22% slump in total gross profit from the previous year. The operating margin plummeted to 7.6% from 17.2% the prior year. Tesla indicated that the Cybertruck would not generate positive cash flow in its initial 12-18 months. Elon Musk expressed a gloomy perspective regarding the broader economy. Specifically, their earnings per share were 66 cents against the estimated 74 cents, free cash flow was $848 million versus the $2.59 billion projection, and revenue came in at $23.4 billion, falling short of the $24.06 billion forecast.

2. OpenAI is reportedly in discussions to sell shares at a valuation of $86 billion. This tender offer negotiation with potential investors, if successful, would catapult OpenAI placing it among the globe's top-valued private companies, with only SpaceX, led by Elon Musk, and ByteDance, TikTok's parent firm, ahead.

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4. Headlines

   1. Netflix matched its revenue estimates and topped its profit projection for the last quarter.

   2. US weekly jobless claims came in at 198,000, which is lower than expected.

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