Core Insights - Tesla's margin erosion reflects a shift in its business model, relying on pricing incentives to drive volume as the $7,500 U.S. EV tax credit expired [1][2] - The company reported a net income drop of approximately 37% year-over-year to $1.4 billion, with gross margin at around 18%, down from nearly 19.8% a year ago [4][5] - Tesla's automotive gross margin, excluding regulatory credits, was around 15.4%, indicating sliding core profitability despite increased vehicle sales [7][10] Financial Performance - Tesla achieved $28.1 billion in revenue, a 12% increase from the previous year, and delivered 497,099 vehicles, the highest in its history [5] - Adjusted EPS was $0.50, missing the expected $0.55, while operating expenses surged by 50% due to investments in software and next-gen manufacturing [3][4] - Free cash flow reached a record $4 billion, with $41.6 billion in cash and investments at the end of the quarter [5] Production and Deliveries - Production totaled approximately 447,450 units, resulting in a 50,000-car gap between output and deliveries, the widest since early 2023 [1] - Deliveries increased by 33% in China and 28% in North America, although some growth was attributed to the expiring tax credits [8] Strategic Initiatives - Tesla plans substantial capital expenditure increases in 2026 to fund AI and robotics expansion, indicating a long-term focus despite near-term margin pressures [2] - The company is advancing its AI initiatives, with Musk stating that Tesla has reached a "critical inflection point" in integrating AI into its operations [13] Energy Segment - Energy generation and storage revenue climbed 44% to $3.42 billion, with gross profit hitting a record $1.1 billion, showcasing the potential of Tesla's energy segment [21][22] - The company is positioning its energy products as critical to national infrastructure, with expectations for continued growth despite competitive pressures [19][22] Future Outlook - Musk emphasized the importance of scaling AI and robotics, with plans for a robotaxi rollout and the development of a humanoid robot, Optimus [14][17] - The company is navigating a complex landscape of margin compression and operational challenges while pursuing ambitious long-term goals [23][24]

Core Business Valuation - The core automotive and energy business of the company is valued at approximately $150 per share based on projected earnings of $2 and a high earnings multiple of 75 [2] - The stock price also reflects significant potential from new products, particularly in robotics and full self-driving technology, which could add about $300 per share in value [3] Strategic Focus - There are concerns regarding the company's focus on future products rather than its highly profitable core EV business, which is considered to produce the best electric vehicles in the market [5][6] - The company is advised to prioritize selling cars in the near term to maintain profitability and improve its image during the transition to future technologies [6] Future Profitability - The timeline for profitability in the robotics sector is uncertain, and it is suggested that the company may take a long time to generate revenue from these new ventures [5] - The reliance on future product success, particularly from robotics, raises questions about the sustainability of the current business model without strong performance from the core EV segment [4]

By Akash Sriram and Abhirup Roy (Reuters) -Tesla reported record third-quarter revenue that beat Wall Street estimates on Wednesday, driven by the highest quarterly sales of its electric vehicles as U.S. buyers rushed to lock in a key tax credit ahead of its expiry last month. However, Tesla's profit failed to live up to analysts' expectations, in part due to tariff and research costs, as well as a drop in income from regulatory credits that are expected to continue to fade away with recent legislation p ...

Core Insights - Tesla is set to report earnings, with analysts keenly awaiting insights from Elon Musk during the conference call [1][4] - The company has seen its shares rise 100% over the past year, but there are concerns about future performance despite strong current sales [2][4] Financial Performance - Analysts expect Tesla's third-quarter earnings per share (EPS) to fall approximately 25% year-over-year to 53 cents, while revenue is projected to increase by about 5% to $26.45 billion [5] - Adjusted earnings are anticipated to be around $1.9 billion, significantly lower than the $2.5 billion reported a year ago, indicating potential headwinds [5][6] Market Dynamics - Record deliveries of nearly 500,000 cars in the third quarter were supported by the now-expired $7,500 EV tax credit, which has contributed to reduced EV inventories and improved margins [6][8] - There is an expectation of a decline in sales in the fourth quarter due to a pull-forward effect from the end of the tax credits [7][9] Regulatory Environment - The elimination of the zero-emission vehicle credit and corporate average fuel economy fines has raised concerns, as these credits have generated $11 billion for Tesla since 2019, accounting for about 16% of its total gross profits last year [8][9] - Investors will be closely monitoring the impact of these regulatory changes on Tesla's financials and future guidance [9] Strategic Focus - The earnings call will likely address Tesla's future direction, including developments in autonomous driving technology and the energy business, as the company aims to position itself as more than just a car manufacturer [10][12] - The performance of Tesla's robotics initiatives, particularly the Optimus project, will also be a key topic of discussion [10]

Core Insights - Cathie Wood's investment strategy involves adjusting positions based on stock performance, leading to significant gains during market rallies, particularly in tech stocks [1][2] - The Ark Innovation ETF has shown a year-to-date increase of 54% as of October 21, significantly outperforming the S&P 500's 14.5% gain [2] - Despite a remarkable return of 153% in 2020, the Ark Innovation ETF has faced volatility, resulting in a five-year annualized return of negative 1.8% compared to the S&P 500's 16.1% [3] Fund Performance - The Ark funds experienced a rally in early 2021 due to investor optimism regarding potential deregulation under the Trump administration, but faced declines in March and April due to macroeconomic concerns [2] - As of October 20, the Ark Innovation ETF saw net outflows of approximately $1.44 billion over five days, indicating investor caution [4] Investment Strategy - Wood's strategy focuses on investing in emerging high-tech companies in sectors like AI, blockchain, and robotics, which are believed to have the potential for significant long-term returns despite their inherent volatility [4][5] - Over the past decade, the Ark Innovation ETF has reportedly wiped out $7 billion in investor wealth, ranking as the third-biggest wealth destroyer among mutual funds and ETFs [6] Market Outlook - Wood remains optimistic about the market, having dismissed recession predictions and maintaining a positive outlook for tech stocks in a letter to investors [7]

Future Prospects - Tesla is considered an easy long-term investment [1] - The company is involved in robotics, AI, and Robo Taxis [1] - Tesla is positioned as "the future of everything company" [1] Market Prediction - Polymarket projects Tesla to significantly exceed earnings expectations [1] - Polymarket estimates an 80% chance of Tesla surpassing earnings expectations [1]

Intuitive Surgical - Intuitive Surgical's stock has seen a significant rally, with shares jumping more than 17% following strong earnings results [2][3] - The company reported earnings of $240 per share and revenue exceeding $2.5 billion, marking a year-over-year sales increase of over 20% [2] - The Da Vinci robotic system continues to gain traction, with procedures expected to increase by 17% to 17.5% this year, up from a previous estimate of 12% to 17% [4][3] - Intuitive Surgical has installed over 400 new systems this year, a substantial increase from 110 installations last year [5] Capital One - Capital One's shares rose by more than 4% after reporting adjusted EPS of $5.95, significantly exceeding expectations [7] - Revenue for the quarter was reported at $15.3 billion, also better than anticipated, driven by stronger lending income and a decrease in customer delinquencies [8] - The integration of the Discover business is progressing well, with integration expenses reduced to approximately $0.41 per share [10] GE Vernova - GE Vernova reported revenue of nearly $10 billion, a significant increase from the previous year, driven by strong demand for power and grid infrastructure [12][13] - Although adjusted EPS missed expectations at $1.64, EBITDA exceeded forecasts, indicating a positive outlook for the company [12] - Orders for GE Vernova surged by 55%, marking the largest gain since its spin-off from GE [13] Beyond Meat - Beyond Meat's stock has surged nearly 50% and is now considered a meme stock, with a 200% increase over four days due to its availability in Walmart [14]

Core Insights - The "Magnificent Seven" stocks have achieved a total return of approximately 18% through mid-October, which is significantly lower than the 64% gain seen in 2024 [1] - The Ark Autonomous Technology & Robotics ETF has outperformed the Magnificent Seven, gaining 56% so far in 2025, driven by its focus on emerging technologies [2][6] Performance Comparison - The Roundhill Magnificent Seven ETF (MAGS) has shown strong performance over less than a year, but it is overshadowed by the Ark ETF's returns [1] - The Ark ETF's success is attributed to its active management and focus on innovative sectors like AI and robotics, which are often overlooked by traditional ETFs [4] Investment Strategy - The Ark Autonomous Technology & Robotics ETF is actively managed and seeks unique investment opportunities beyond mega-cap stocks, which are heavily represented in other ETFs [4] - The fund's largest holding is Tesla, but it also includes smaller companies like Kratos Defense & Security Solutions and Rocket Lab, which have seen substantial gains of 239% and 162% respectively in 2025 [5][6] Future Outlook - The Ark ETF, with its diverse portfolio of 36 stocks, offers a compelling option for investors looking to gain exposure to AI and technology sectors beyond the traditional mega-cap stocks [7]

Core Viewpoint - The automotive industry is undergoing significant changes, raising questions about the future of Tesla and whether it is time for investors to sell their shares [1][14]. Current Challenges - Tesla is facing multiple challenges, including consumer backlash from political controversies, commercial failures of the Cybertruck, high-level talent departures, and declining vehicle dependability [4]. - A class action lawsuit in Australia has emerged against Tesla regarding false claims related to its Full Self-Driving (FSD) package, with similar lawsuits also occurring in China and the U.S. [5][7]. - Legal issues are compounded by significant verdicts against Tesla, including a $329 million ruling related to a fatal crash and a $243 million verdict in another case [7]. Brand and Marketing Strategy - Tesla's brand has suffered due to various developments, and the company's previous stance against advertising has shifted, as it has recently begun promoting shareholder votes rather than its vehicles [2][10]. - The optics of spending on advertising for executive compensation rather than vehicle promotion are viewed negatively, especially given unfilled production capacity [12]. Future Outlook - Despite current adversities, there is potential for Tesla to thrive in emerging industries such as artificial intelligence, robotaxi services, and robotics, suggesting that the company's best days may still be ahead [15]. - Investors are encouraged to reassess their investment thesis, as Tesla is evolving from an electric vehicle manufacturer to a technology-based company [16]. - The company is at a critical juncture, and it is essential for investors to determine if they still align with Tesla's evolving vision [17].

RT s4mmy (@S4mmyEth)This week we've seen a resurgence of interest around Robotics and DeFi for AI AgentsThe first boom may have seen a nasty selloff earlier this year, but builders with conviction have continued to develop viable solutionsHere's a roundup from the past week alone:- @Grayscale DeAI fund opens; TAO leading with 33.5% of its holdings- @opentensor (Bittensor) subnet registration is back with a 128 cap, meaning darwinian evolution of its underlying ecosystem; if you don't compete you'll be repla ...