Tesla Q3 earnings: EPS of 0.48 beat expectations, but operating profit plunged 56%. Shares rose just over 1% after hours—this is the kind of earnings report I’d rather watch from the sidelines.
What stood out:
Revenue was $28.05 billion, flat year over year and broadly in line with expectations. EPS of $0.48 slightly beat expectations, but was still 4% below the $0.50 reported a year ago.
Operating profit was $718 million, down 56% year over year, with margins at just 2.6%. The good news: it’s climbed back from Q2’s bottom of 1.4%, and automotive gross margin (excluding credits) recovered to 18.1%.
Spending: R&D surged 69% to $2.76 billion, capital expenditures doubled to $4.7 billion, and free cash flow was just $1.53 billion—less than 40% of the level a year ago.
My take:
This isn’t bullish news; it’s “not as bad as feared.” The rebound in gross margin gives the bulls something to build a story around, while the halving of profits leaves the bears unconvinced.
META also reported after hours last night, beating revenue expectations and gaining 5%. It’s not that investors aren’t buying tech stocks—they just aren’t buying Tesla’s report card.
What I’m doing:
Not chasing it. A move above 395 (above the after-hours high) would show the bulls are taking over; a drop below 380 would invalidate this rebound.
Pick a side:
Are you betting that “a gross margin recovery means a turning point is near,” or that “profits being cut in half means the bottom is still ahead”?
$TSLA $META
#美股 #EarningsSeason
What stood out:
Revenue was $28.05 billion, flat year over year and broadly in line with expectations. EPS of $0.48 slightly beat expectations, but was still 4% below the $0.50 reported a year ago.
Operating profit was $718 million, down 56% year over year, with margins at just 2.6%. The good news: it’s climbed back from Q2’s bottom of 1.4%, and automotive gross margin (excluding credits) recovered to 18.1%.
Spending: R&D surged 69% to $2.76 billion, capital expenditures doubled to $4.7 billion, and free cash flow was just $1.53 billion—less than 40% of the level a year ago.
My take:
This isn’t bullish news; it’s “not as bad as feared.” The rebound in gross margin gives the bulls something to build a story around, while the halving of profits leaves the bears unconvinced.
META also reported after hours last night, beating revenue expectations and gaining 5%. It’s not that investors aren’t buying tech stocks—they just aren’t buying Tesla’s report card.
What I’m doing:
Not chasing it. A move above 395 (above the after-hours high) would show the bulls are taking over; a drop below 380 would invalidate this rebound.
Pick a side:
Are you betting that “a gross margin recovery means a turning point is near,” or that “profits being cut in half means the bottom is still ahead”?
$TSLA $META
#美股 #EarningsSeason