Tesla’s biggest day since 2013

Hey Superheroes,

Wall Street’s quarterly earnings season is starting to ramp up. We’re keeping a close watch on some industry giants, with Spotify, Coca-Cola, IBM and Tesla reporting this week.

And of course, we’re all eager to see how Elon Musk’s vision for the “Cybercab” self-driving taxis is shaping up. Let’s dive in!

Tesla earnings came in 24% more than expected

Tesla released its Q3 earnings yesterday, triggering a 22% surge in its share price overnight.

This robust result translated into a staggering US$150 billion boost to Tesla’s market cap.

So, what fuelled Tesla’s rebound after its post-Robotaxi Day stock slump? Let’s take a look at some numbers.

☝️What’s Up

Here’s how Tesla performed compared to what analysts expected:

• Revenue: US$25.18B vs. US$25.37B expected (↓0.75%)
• Earnings per share: US$0.72 actual vs. US$0.58 expected (↑24.14%)
• Net income: US$2.51B vs US$2.01B expected (↑24.88%)

Although revenue fell slightly short of expectations, it jumped 8% this quarter compared to the US$23.35B revenue from the same period last year.

After four consecutive quarters of year-over-year profit decreases, Tesla’s sales and net income have finally rallied. Just like they hinted before, Tesla is navigating between “two major growth waves” – scaling up its platforms globally for both the Models 3 and Y and the next-generation vehicles.

Additionally, Tesla anticipates a “slight growth” in vehicle deliveries this year, surpassing the consensus forecasted drop from US$1.81 million in 2023 to US$1.78 million.

📊The Revenue Breakdown

Automotive revenues, which account for the bulk of the company’s earnings, saw a modest 2% increase this quarter to reach US$20 billion.

Energy generation and storage revenue surged by an impressive 52% to US$2.38 billion while services and other revenue grew 29% to US$2.79 billion.

The Cybertruck, Tesla’s newest model, has already claimed the third spot among fully electric vehicles in the U.S., with the Model 3 and Model Y taking the top two positions.

💡Musk’s Ambition

It looks like Elon Musk is fully committed to transforming Tesla into a leader in AI and autonomous vehicles, stating that all future Tesla models will be fully autonomous. 

Tesla is also planning to start a ride-hailing service in the U.S. in 2025.

Despite Musk’s bold ambition, Tesla shares dropped 9% in the trading session following the robotaxi reveal on 11 October 2024. Many investors were disappointed by the lack of specifics and finding the event too general.

🚨Fierce Rivalry Ahead

Tesla is still facing growing pressure from Chinese rivals like BYD, which surpassed Tesla as the global leading electric carmaker at the end of 2023.

In the U.S., Ford and General motors are becoming strong competitors as they ramp up their sales of electric vehicles.

For now, Elon Musk seems quite optimistic that the unveiling of the Cybercab and more affordable models will see Tesla’s vehicle growth reach 20% to 30% in 2025.

🔦  Some other things we’re shining the Spotlight on:

• GOLD IS KING: Gold prices soared to a new all-time high of A$4,000 per ounce. With uncertainty around the upcoming U.S. election and ongoing geopolitical events in the Middle East, many investors seem to be turning to gold as a reliable safe-haven asset.
• WELL-PAID CONSULTANT: WiseTech Global (ASX:WTC) jumped 16% today following CEO Richard White’s resignation due to personal charges. However, he will only take a short break before returning in a consulting role, earning the same salary he was receiving as CEO.
• SCANDAL TROUBLE: Mineral Resources founder Chris Ellison has been accused of operating an offshore tax scheme for the past decade. This scandal has caused the company’s share price to fall by 14% this week as the public awaits a response from the board regarding their failure to inform shareholders.

Latest AU inflation data is set to be released next Wednesday. 

Apple, Amazon, Alphabet, Meta and Microsoft are among releasing quarterly reports next week. 

Keep up to date on the markets by following us on Instagram, @superheroau!