-- Here's How Much Traders Expect Tesla Stock to Move After Earnings [Stocks Little Changed Ahead of Fed Decision, Tech Earnings][What to Expect from Fed Meeting][How One Stock Shaved 422 Points Off the Dow Tuesday][Nvidia's Plans to Sell More Chips in China Just Cleared a Major Hurdle]- Top StoriesTesla shares hit a record high last month, even as its vehicle sales have declined, as investors focus on the company's advances in AI, self-driving cars, and robotics.David Paul Morris / Bloomberg / Getty Images ...

Core Insights - Tesla is expected to report its fourth-quarter financial results, with traders anticipating a significant stock movement of about 5% in either direction following the announcement [1][7] - The company is facing declining vehicle sales, but investors are focusing on its growth potential in artificial intelligence, self-driving cars, and robotics [3] Financial Performance - For the fourth quarter, Tesla is projected to report revenue of $25.1 billion, which represents a decline of approximately 2.4% year-over-year, with adjusted earnings per share expected to be $0.46, down from $0.60 last year [6] Market Expectations - Options pricing indicates that Tesla's stock could fluctuate between $412 and $459 by the end of the week, based on Monday's closing price of around $435 [1][7] - Wall Street analysts are divided on Tesla's stock, with six out of eleven analysts rating it as a "buy," three as "hold," and two as "sell," with an average price target of $446, indicating a modest 2% potential rise from the recent close [7] Strategic Developments - CEO Elon Musk is expected to discuss advancements in self-driving technology and robotics during the earnings call, which could become key revenue drivers as EV sales face challenges [2] - Tesla plans to start selling its Optimus humanoid robots to the public by the end of next year, as mentioned by Musk [2] - The company has removed human safety monitors from some of its robotaxis in Austin, which analysts suggest could be a significant step for its robotaxi strategy [5] Revenue Streams - Sales from Optimus robots and subscriptions for Tesla's Full Self-Driving (FSD) software are critical metrics for Musk's compensation agreement, with FSD transitioning to a recurring subscription model starting next month [4]

Core Viewpoint - Lemonade's stock surged to a four-year high following the launch of a discounted insurance program for Tesla drivers utilizing full self-driving features, reflecting strong investor interest in the new offering [1][5]. Group 1: Insurance Program Launch - Lemonade introduced an Autonomous Car Insurance plan that offers a 50% discount on miles driven with Tesla's autopilot engaged, marking a significant shift in their insurance offerings [4][8]. - The plan will initially be available in Arizona starting January 26 and in Oregon in February, with Lemonade currently offering car insurance in only 10 states [4]. Group 2: Background and Development - The concept for Tesla insurance originated from a tweet by CEO Shai Wininger in October 2025, where he proposed integrating Tesla's in-car data with Lemonade's drive-tracking systems for more accurate data [2]. - Initially, the idea did not gain traction, leading to an 8% drop in Lemonade's stock over two days following the announcement [3]. Group 3: Future Plans and Market Position - Lemonade plans to expand its FSD rebates to additional states and eventually to other self-driving vehicles, starting with Tesla due to its leadership in the full self-driving market [9].

Core Insights - Tesla Inc. aims to regain its position as the leading electric vehicle (EV) company globally, focusing on self-driving technology and new model launches [1] - Stellantis N.V. has partnered with Bolt to deploy driverless vehicles in Europe, planning on-road trials by 2026, which will integrate their autonomous vehicle platforms with Bolt's extensive ride-hailing network [2] - The European EV market is becoming increasingly competitive, with traditional automakers like Ford and Renault developing affordable EVs to counter the rise of Chinese manufacturers and Tesla's declining sales [5][3] Tesla's Challenges - Tesla's self-driving program is facing significant challenges, including a decline in sales by double-digit percentages in 2025, with some countries experiencing over a 40% drop [3] - Allegations of Elon Musk's interference in EU politics may have contributed to buyer dissatisfaction in Europe [3] - Tesla's plans to introduce a $25,000 EV are becoming increasingly delayed, raising concerns about its competitive edge in the low-end market [6] Competitive Landscape - The partnership between Stellantis and Bolt highlights the regulatory challenges of deploying self-driving vehicles across different EU nations, but both companies are optimistic about overcoming these hurdles [3] - Ford's CEO emphasized the urgency of competing in the European EV market, especially after poor performance in the U.S. [5] - The entry of new competitors in the small EV segment indicates a shift in market dynamics, posing additional challenges for Tesla [5]

Core Insights - Tesla achieved record vehicle deliveries in Q3 2025, but profits were still 37% lower than the same quarter last year, indicating challenges in profitability despite high sales volume [2][3] - CEO Elon Musk is focused on developing AI and self-driving technology, which he believes is essential for unlocking the full value of a proposed $1 trillion compensation package [1][14] - The company faces significant operating expenses, which increased by 50% year-over-year, largely due to investments in AI and restructuring costs [4][13] Sales and Financial Performance - Tesla delivered 497,099 vehicles in Q3 2025, generating $21.2 billion in automotive revenue, marking the best revenue figure in over a year [3] - The profit for Q3 was $1.4 billion, a modest increase of $200 million from Q2 2025, but still significantly lower than previous years [3][2] - The company is under pressure to achieve another record quarter to match the number of cars shipped in 2024 or 2023 [9][10] Operating Expenses and Challenges - Operating expenses rose significantly due to spending on AI, R&D projects, and restructuring charges of nearly $240 million, with no clear explanation provided for the restructuring [4][12] - Tariffs also negatively impacted profits, costing the company around $400 million [5] Future Strategy and AI Focus - Musk emphasized the importance of AI and self-driving technology, stating that Tesla is at a critical inflection point in scaling these initiatives [6][11] - The company plans to start building the third version of the Optimus robot in Q1 2026, despite previous delays in production [12] - Increased capital expenditures are expected in 2026 due to ongoing AI and robotics projects, alongside rising employee-related spending to attract talent [13] Compensation Package and Shareholder Dynamics - Tesla is proposing a $1 trillion compensation package for Musk, which is set for a vote at the upcoming annual shareholder meeting [14] - Despite opposition from advisory groups, the package is likely to pass due to strong shareholder support [14] - Musk has expressed concerns about losing control of the company if the compensation package is not approved, indicating the high stakes involved [15]

Core Viewpoint - Amazon's shares have declined by 4% this month, but Wells Fargo has upgraded the stock to overweight and raised its price target to $280 from $245, indicating increased confidence in revenue acceleration from Amazon Web Services [1][2]. Company Performance - Amazon's stock is currently underperforming compared to the S&P 500 and the consumer discretionary sector, ranking as the second worst among the "magnificent seven" tech stocks, only ahead of Apple [3][4]. Self-Driving Cars Initiative - Amazon's self-driving car unit, Zuks, is seeking approval for 2,500 fully driverless robo-taxis, having already launched a pilot service in Las Vegas. Zuks aims to build dedicated robo-taxis from scratch, without any human driving capabilities [4][5]. Technical Analysis - Amazon's stock has shown a series of higher lows but has faced repeated failures at a resistance level near $236. The stock has recently fallen below key moving averages, with current support levels around $216 and $206 [7][8]. Options Activity - Options trading for Amazon has seen over 726,000 contracts today, with 77% being calls and 23% puts. The expected price movement for the next 23 days is around 14.8%, with a range from $206 to $235 [11][12]. Notable Trades - A significant trade involved the purchase of approximately 4,900 call options at a $270 strike price while selling about 9,800 call options at a $300 strike price, indicating a bullish outlook but requiring a 23% move to break even [13][14].

Market Overview - The VIX index spiked 12% due to a better-than-expected auction for 10-year notes, raising fears of a stock market selloff [2] - Following geopolitical unrest in the Middle East, the VIX surged another 14% [2] - The S&P 500 has been relatively flat, while one of the highlighted swing trades rose 4% [2] Company Analysis: Lululemon Athletica Inc. (LULU) - Lululemon has faced significant challenges due to "Liberation Day" tariffs, leading to a 35% decline in stock price this year [5][6] - The company trimmed its full-year earnings guidance by 2%, which contributed to a 22% drop in shares after the first-quarter earnings call [6] - Currently, Lululemon trades at 17 times forward earnings, which is 40% below its historical averages [7] - Recent tariff rollbacks between the U.S. and China may positively impact Lululemon's supply chain [8] - The U.S. Consumer Sentiment Index increased to 60.5, indicating a potential rebound in consumer spending, which is crucial for Lululemon [9] - TradeSmith's quantitative system forecasts an 11% upside for Lululemon over the next 30 days [10] Company Analysis: The Toro Co. (TTC) - Toro's shares have dropped 30% over the past year due to slowing revenue growth and shrinking margins [13] - The company now trades at 16.5 times forward earnings, the lowest since 2012, indicating a potential buying opportunity [14] - TradeSmith's system predicts a 10% increase in share prices over the next 30 days, supported by positive signals from home improvement retailers [15] Company Analysis: Alphabet Inc. (GOOG) - Alphabet is projected to have a 17.5% upside over the next 30 days, despite a recent downgrade [18] - The company dominates the search engine market with a 90% market share and has strong operations in cloud computing and streaming services [20] - Alphabet's valuation is currently subdued due to a conglomerate discount and ongoing antitrust lawsuits [21][24] - The company's AI-focused cloud business is expected to enhance its valuation by aligning its diversified businesses [21] - Alphabet trades at 18.5 times forward earnings, below the median of other major tech firms [25]

Group 1 - Tesla CEO Elon Musk confirmed that the company will have robotaxis operational in Austin, Texas by the end of June [1] - The initial launch will start with approximately 10 vehicles, with plans to expand to thousands if the launch is successful and incident-free [2] - Tesla's robotaxis will be Model Y vehicles equipped with a new version of Full Self Driving (FSD) known as FSD Unsupervised [3] Group 2 - Tesla will implement geofencing for its robotaxis in Austin, restricting the areas where the vehicles can operate, and there will be no human safety driver present [4] - Tesla employees will remotely monitor the fleet to ensure safety and performance, with a gradual reduction in monitoring as confidence in the system increases [4] - Alphabet's Waymo is currently operating commercial driverless ride-hailing services, conducting 250,000 paid trips per week [3]