'Fast Money' traders break down Tesla's Q3 earnings results

Core Insights - The stock has increased approximately 35% since the last quarter, yet it is currently down less than 2% in after-hours trading, indicating market anticipation for the upcoming conference call [1] - Despite record revenue, the company's performance as an automobile manufacturer is not impressive, with free cash flow reported at $4 billion but margins below 15.5% when excluding regulatory credits, which is worse than market expectations [2][3] Financial Performance - The energy storage segment showed significant growth, with revenue increasing from $2.4 billion in Q2 to $3.4 billion, representing about 12-13% of the total revenue [5] - Capital expenditures (capex) decreased by 37% year-over-year, raising questions about the company's focus on future technologies like robots and cyber taxis [14] Competitive Landscape - The competition in the self-driving vehicle market is intensifying, with GM unveiling a competitor to Tesla's full self-driving technology, indicating that there are alternative investment opportunities outside of Tesla [9][10] - Tesla's market share is declining, with less than 40% in the US, mid-single digits in China, and below 10% in Europe, suggesting challenges in maintaining growth amid increasing competition [13] Future Prospects - The company is investing in future technologies such as Optimus and robo-taxis, but there is uncertainty regarding the timeline for revenue generation from these initiatives [4][10] - The stock appears to be highly valued based on its price-to-earnings (PE) ratio, reflecting investor expectations for future growth from these other ventures [7][8]