So it feels like there's a lot riding maybe not just on these numbers but on Tesla execution generally. I mean the shares have doubled since last April but they've kind of gone sideways. It kind of tread water since September.So what in your view would sort of move the needle more substantially in in terms of these numbers. >> Yeah. In our view, it's all about riskreward.And given the runup that the stock had had uh really since last April, um you know, caused us to go to a sell last fall, um we just felt l ...

Market Performance - Stocks closed the week in the green, with the S&P, Nasdaq, and Dow Jones reaching new record highs, each rallying about 2% or more, while the Russell gained 2.5% [1] - All sectors except consumer staples and utilities ended the week positively, with technology regaining leadership with a rally of 2.75% [2] Company Earnings and Developments - Netflix experienced a decline to a six-month low due to an earnings miss attributed to a $619 million Brazilian tax dispute charge, but it aims to double its revenue by 2025 and is exploring AI for new ad formats [2][3] - Tesla reported an EPS miss but exceeded revenue expectations, reporting $28.1 billion against estimates of $26.2 billion, and confirmed that production for its Cyber Cab, Tesla Semi, and Mega Pac 3 will start in 2026 [3][4] - IBM and AMD reached all-time highs driven by advancements in quantum computing, with IBM planning to build a large-scale quantum computer by 2029 and running a quantum-based algorithm on AMD chips [4][5] - Shares of AMD and IBM increased by 8.5% and 9.3% respectively over the week following IBM's earnings beat [5] Upcoming Earnings Reports - Five of the Mag Seven companies are set to report earnings, including Microsoft, Meta, and Alphabet on Wednesday, and Apple and Amazon on Thursday [5] Macro Events - The Federal Reserve's interest rate decision is anticipated on Wednesday, which could impact market dynamics [6]

Core Viewpoint - Tesla CEO Elon Musk criticized proxy advisory firms ISS and Glass Lewis, labeling them as "corporate terrorists" for recommending shareholders reject his proposed pay package, which could be valued at a trillion dollars. This statement followed Tesla's earnings call, where the company reported a 12% increase in third-quarter revenue but fell short of earnings expectations, leading to a 3.1% decline in stock price [2][4]. Financial Performance - Tesla reported a 12% increase in third-quarter revenue but missed earnings expectations due to a higher-than-expected tax rate. The earnings per share (EPS) decreased by 31% year-over-year, raising concerns about the company's future earnings growth trajectory [2][4][19]. - Despite the earnings miss, sales and margins exceeded expectations, indicating some operational strength [4]. Shareholder Dynamics - The upcoming annual meeting on November 6 is crucial, particularly regarding the vote on Musk's pay package. Historically, Tesla shareholders have aligned with the board's recommendations, as seen in the previous year's meeting where 72% voted to reinstate Musk's 2018 pay package [5][8][15]. - Analysts believe that the new trillion-dollar pay package will likely pass, although possibly with a lower percentage of support compared to previous votes [8][9]. Product Pipeline and Execution Risks - Tesla is facing challenges due to a lack of new product launches, with only one new vehicle model introduced since the Model Y in March 2020. The company has been criticized for the disappointing commercial performance of the Cyber Truck [17][18]. - The company plans to achieve volume production of the Cyber Cab, Semi, and Mega Pac 3 next year, but this creates significant execution risks as the pressure mounts on Musk and Tesla to deliver these products on time [17][19].

Tesla Financial Performance - Tesla's third quarter revenue reached $28.1 billion, exceeding estimates of $26.36 billion, indicating a significant revenue beat [1] - Adjusted EPS was reported at 50 cents, slightly below the expected 54 cents, marking an EPS miss [2][18] - Free cash flow for the quarter was reported at $3.99 billion, significantly higher than the estimated $1.25 billion, representing a 46% year-over-year increase [13][43] Market Dynamics and Product Developments - There is speculation about a pull forward in demand due to the expiration of EV tax credits at the end of September, which may have contributed to the revenue increase [3][8] - New product offerings in the China market, including the Cyber Cab, Tesla Semi, and Mega Pac 3, are on schedule for volume production starting in 2026 [4] - The energy and storage revenue saw a notable increase of 44% year-over-year, outpacing the 6% growth in the auto business [43] Investor Sentiment and Future Outlook - The market response to Tesla's earnings report has been muted, with investors awaiting insights from the upcoming conference call [5][18] - Key areas of focus for investors include updates on autonomous driving, robo-taxis, and the company's strategy in the competitive EV market, particularly in China [5][11][45] - There are concerns regarding the company's ability to maintain demand following the expiration of tax credits and the effectiveness of newly launched lower-priced models [44]