Is Cathie Wood Jumping Ship on Tesla Stock?

Core Viewpoint - Cathie Wood's consistent selling of Tesla shares has raised questions among investors, especially given the stock's current price and strong cash flow performance [1][3]. Group 1: Tesla's Stock Performance - Tesla's stock is currently trading around $467, reflecting a year-to-date gain of 15.7% [4]. - The company has a market capitalization of approximately $1.5 trillion, with a trailing price-to-earnings (P/E) ratio of 337.85x, significantly higher than the sector median of 16.58x [5]. Group 2: Earnings Report Insights - Tesla's latest earnings report for Q3 revealed earnings per share (EPS) of $0.37, which missed the consensus estimate of $0.41 by $0.04, resulting in a negative surprise of 9.76% [6]. - Despite the EPS miss, Tesla reported revenue of $28.10 billion, surpassing estimates of $26.37 billion, indicating strong demand [6]. Group 3: Profitability and Expenses - Tesla's operating expenses increased by 50% year-over-year to $3.43 billion, leading to a decline in operating margins from 10.8% to 5.8% [7]. - The company's gross profit only increased by 1% despite a 12% revenue growth, highlighting the impact of investments on near-term earnings [7]. - Tesla generated a record $4.8 billion in free cash flow, a significant increase from the previous quarter's $146 million [7].