Sundry Photography/iStock Editorial via Getty Images Listen below or on the go on Apple Podcasts and Spotify Margin worries lead to selling of another big AI trade name. (0:15) Pot stocks pop. (1:16) Bud closing breweries. (2:07) The following is an abridged transcript: The AI trade hit another speed bump, with Broadcom (AVGO) under pressure post-earnings on margin concerns. Deutsche Bank’s Jim Reid noted that after a 78% YTD rally, Broadcom now has a larger market cap than Meta and Tesla, underscor ...

Financial Data and Key Metrics Changes - The company generated a record revenue of $4.8 billion in Q3 2025, with a gross profit of $803 million and a gross profit margin of 16.7% [7] - Adjusted earnings per share (EPS) was $7.17, with adjusted EBITDA at $261 million [7][16] - Adjusted net income for the quarter was $140 million, excluding various non-cash and one-time expenses [16] Business Line Data and Key Metrics Changes - Same-store revenue for new vehicles increased by 8% year-over-year, with unit sales up by 7% [9] - Used vehicle unit volume decreased by 4% year-over-year, but used retail gross profit per unit (GPU) increased to $1,551 [10] - Parts and service gross profit rose by 7% year-over-year, with a gross profit margin of 58.8% [13] Market Data and Key Metrics Changes - The company experienced strong demand for electric vehicles (EVs), with EV unit sales doubling from Q2 to Q3 [25] - Same-store new vehicle day supply was 58 days at the end of September, indicating a stable inventory level against consumer demand [10] Company Strategy and Development Direction - The company is focused on deleveraging its balance sheet and optimizing its portfolio while being opportunistic with share repurchases [6][20] - The integration of the Chambers Group is expected to enhance operating metrics and contribute positively to gross profits [4][26] - The strategy emphasizes large, transformative acquisitions in desirable markets [6] Management's Comments on Operating Environment and Future Outlook - Management noted that the fourth quarter is traditionally strong for luxury vehicle sales, with expectations for margins to hold up well [25] - There are anticipated headwinds in the used vehicle market due to a softening labor market and vehicle affordability challenges [10] - The company expects to see efficiency gains from the rollout of Tekion, with significant savings projected by early 2027 [60][61] Other Important Information - The company divested four stores in July, generating annualized revenue of $300 million, as part of its disciplined portfolio management [6] - The adjusted SG&A as a percentage of gross profit was 64.2%, with expectations for reduction as the Tekion rollout progresses [17] Q&A Session Summary Question: Impact of Chambers acquisition on new GPUs - Management confirmed that the Chambers acquisition is expected to have a slightly accretive effect on new GPUs in Q4 [26] Question: Changes in TCA outlook and EPS impact - Management explained that the revised TCA outlook reflects changes in the SAR assumption and the impact of acquisitions and divestitures [31][33] Question: Capital allocation priorities - Management indicated a focus on share repurchases and debt reduction, with M&A remaining a consideration depending on market conditions [44] Question: Trends in luxury vehicle sales - Management noted that luxury vehicle sales remain strong, with no material changes in consumer demand observed [51] Question: Strategies for increasing used vehicle volume - Management highlighted the use of digital marketing tools and a focus on service drives to acquire more used vehicles [65]

Core Insights - General Motors (GM) is restructuring its design engineering team, resulting in layoffs primarily at its tech center in Warren, Michigan, affecting "low hundreds" of workers [1][2] - The layoffs were announced shortly after GM reported strong third-quarter earnings, which led to a 15% surge in the company's stock, marking its largest single-day gain since 2020 [2] - GM has raised its profit outlook due to reduced tariff pressures and lower electric vehicle (EV) losses, having previously reported a $1.1 billion profit reduction due to tariffs and $1.6 billion in charges related to its EV plan rollback [3] Industry Context - Other automakers, such as Rivian, are also downsizing, with Rivian planning to cut 600 jobs, which is 4.5% of its workforce, in response to the expiration of the $7,500 EV tax credit in the US [4]

Core Insights - Tesla reported its third-quarter financials, achieving record highs in vehicle deliveries and free cash flow, but its adjusted earnings fell short of market expectations [1][4] Financial Performance - Tesla delivered record vehicle volumes globally, with automotive revenue increasing by 6% year-over-year and 29% sequentially, driven by strong demand for the Model Y [3] - The company's total revenue and free cash flow reached new highs, supported by higher deliveries and energy storage deployments [3] - Adjusted earnings fell 31% from the prior year, primarily due to a decline in regulatory credit revenue and increased costs per vehicle [4] Market Reaction - Despite strong operational metrics, TSLA stock traded lower in the morning session, indicating investor disappointment over the earnings miss and lack of short-term guidance [2] External Factors - The expiration of the U.S. federal EV tax credit of $7,500 in September likely contributed to the record deliveries, as customers rushed to purchase vehicles before the incentive ended [5] - Broader market uncertainties, including fluctuating demand and evolving trade dynamics, have left investors uncertain about Tesla's future performance [2] Product Development - Tesla launched several new automotive and energy products, including the Model YL and Model Y Performance, and expanded its affordable vehicle lineup with the Model 3 and Model Y Standard [6]

Core Insights - Tesla delivered over 497,000 cars last quarter, exceeding Wall Street's expectations with a 7% increase from the previous year, despite a slip in production [1][2] - The surge in deliveries was likely driven by a last-minute rush before the expiration of the $7,500 EV tax credit in September [1] - GM set a new EV sales record with 66,500 deliveries, while Ford's EV sales increased by 30% to over 30,000 units, marking a record for both companies [1][2] Industry Context - Tesla remains the dominant player in the EV market, significantly ahead of its competitors [2] - The removal of government incentives that made EVs more affordable raises questions about future demand in the upcoming quarters [2] - The next few quarters will be critical in assessing whether demand for EVs can sustain without the additional government push [2]