Tesla Q3 Earnings Highlights: EPS Beat, Revenue Miss, Shares Climb On 2025 Timeline For Lower-Cost EVs
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Benzinga's Premarket Prep is the #1 go-to source for everything you need to know before the market opens! Join our expert hosts as they break down the latest market trends, analyze key indicators, and provide actionable insights to help you navigate the trading day ahead.
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00:00Tesla Thursday. It's awesome. We've got some other stories too, but obviously that is the biggest story of the morning
00:06That's the biggest company that reported earnings yesterday. So let's go ahead and just give those numbers real quick. So
00:13You wouldn't know it by looking at the stock, but the sales actually missed the estimate
00:17So sales came in at twenty five point one eight billion missed the twenty five point three seven billion dollar estimate
00:24The EPS though beat 72 cents beat the 58 cent estimate
00:30And the stock went up initially on these numbers popped
00:33I think it was about eight nine percent and then the call started and Elon Musk started talking
00:39And Dennis I'll let you talk about that because I know you were listening more intently than I was
00:45I mean just looking at the earnings
00:47You know over quarter over quarter like the revenue actually went down slightly from last quarter
00:52I don't know if there was anything in the last quarter. That was kind of special that made the revenue higher than previous quarter
00:58But overall it is I mean anytime because Tesla had been in this zone where the earnings had been kind of declining
01:04And then actually to see it pop back up is I think like there was maybe a little bit of a lower bar
01:09And so to see those earnings pop back up. I think that's what people were really looking for
01:14You have summarized it pretty well. We had the big pop on the initial print to like 230
01:19I think everybody was expecting the worst even myself. I thought you know that this report wasn't gonna be great
01:24I hedged one-third of the position by selling the 220 calls. I'd done that a week earlier
01:30So I was actually that that would sell me out at 230 and a half because I got 1050 for him
01:36And then you know
01:38So we popped up like the 18 points up to 230 and then it sat there for a while was waiting call waiting for the call
01:44Then musk gets on and in typical musk fashion
01:47He talked this stock up like non-stop
01:51Everything he was saying was what the market wanted to hear he talked about growth of 25 to 30 percent
01:58That's huge. If he's gonna get that, you know expectations were maybe 12 to 13 percent
02:04So basically doubling, you know, he's talking about doubling that. Um, he talked about the robo-taxi, you know come in
02:10You know, he didn't give timelines we talked about 2 million units
02:14He's talking just you know
02:16Everything that the market wanted to hear and that's when the stock started blasting off again
02:21235 236 240 if you bring up test the stock Joe
02:25You'll see, you know the consolidation around 230 and then the musk chatter, which is the next big bar up
02:30So if you're looking at the big bar up on earnings
02:32Then he sat there for an hour and then the next big pop was the musk conference call
02:36So which popped up too and when he said the robo-taxi thing
02:40Then uber and left start getting hit because you know, you're talking 2 million robo-taxis and then uber, you know goes from 79 a3
02:47It's down two and a half bucks here. Now left getting hit down 2.7 percent
02:53Obviously off of this so very interesting. I mean
02:57The one you know, the jury is still out. It's not like wow the quarter with the quarter was good
03:04The talk the talk was incredible
03:07But the problem with musk is he's one of those opposite CEOs where there's so many CEOs that come out and they under promise and over
03:14Deliver musk is always an over-promiser. Let's hope he doesn't under deliver here though
03:19Cuz that's 25 or 30 percent number the stock pops six seven dollars when he started talking about that. That's a big number
03:26I hope that they can hit that but I don't know man. That's a big number, but I'm happy. It's nice
03:32It's nice like my long-term accounts probably gonna hit all-time highs because I'm huge position in Tesla
03:38So I'm happy about it. But at the same time, I'm still skeptical because I'm like wow
03:43This is a big pop really fast, you know
03:45And then the other consideration because I did a third of the position so I'm some written calls
03:49Do I covered those in you know to continue the party or do I let part of the position go at 2 30?
03:55I would be out. Maybe I haven't fully decided. I have a couple days. They obviously go off the board tomorrow
04:00So I'll decide if I'm gonna roll it up or figure out what I'm gonna do here on those Tesla calls
04:05All right, um a couple things here
04:09one eyeball test
04:10I mean just there's more out there. I mean just flat out there. There's more Tesla cars
04:18But also they're there. Yeah, I mean you're seeing them
04:22The the building actually on Orchard Lake Dennis, they're putting in a dealership a pretty good sized dealership
04:28So that's a note
04:30The other thing I'm gonna say, oh, so it's a car company now
04:34Right. It's a current now. It's a car company. I thought it was a technology company. I don't
04:40Well, no because everyone says it, you know, it's not a car company
04:44It's a technology company, right and that it's the future technology
04:49that's why a lot of the reason you own it is because of the of you know, the the
04:55The robbers well the FSD everything. Yeah
04:59There too. I mean robo taxis is not cars. It's a taxi business
05:04So right, right, I think I think the ship has sailed on this conversation
05:10The Tesla is just a car company. I think the I was being a little facetious, but I didn't catch that. I don't catch
05:17That was getting it's getting a nice lift here
05:20And I will just say I got I got one number for you and it's right before it fell off the cliff
05:28for
05:29242.79
05:31That was your high back on robo the day of the event
05:36Everyone that bought it you're filling the gap you're getting your money back
05:40So right there that was a high that day
05:43Or the day before the gap so I'd keep an eye on that then there's a little congestion above it, but good report
05:49Streets, loving it. I don't what was the expected move? Do you know Dennis?
05:54Thank you was we talked I think was $14. So you're well over the
06:01Double double the expected move. Yeah, so it's a huge move people who are right and straddles are getting hit
06:07I mean the stock continues to climb here too. Like the stock is climbing, you know dramatically here. So
06:16Again
06:18What's the catalyst to bring it back down now, I mean he's talked this up
06:22Here's your analyst commentary here from today because the analysts are scrambling because half of them are bearish out there
06:27Um, you got wet bush reiterating their perform wet bush has been bullish the whole time
06:31They've had that right Piper's reiterating. They're out overweight. They've been bullish, but then he got you know
06:36RBC is raising their price target to 249 trying to get up to where it is right now
06:40Trying to get up to where it is right now price target can accord race 278 Baird reiterates their upper form
06:46Mizzou reiterates their neutral Goldman Sachs raises their price target to 250 because they were lower
06:51They're trying to get up to where it is right now. KGI security is actually upgrade stock
06:55So to Tesla to outperform you can or Fitzgerald they're raising the price target
07:02Truist is still skeptical. They said more questions than answers. Where is the beef?
07:06They are an outlier here because there's nobody else Jeffries and Wells Fargo both are just ridiculous
07:12Jeffries raises their price target to 195 the stocks 243 Wells Fargo raises their price target a
07:19125
07:23120 so what's the analyst even comment?
07:25So Colin Langan from Wells Fargo has a sell rating on the stock underweight rating with a 120 price target
07:33They raise their price target to 125. So all this and they raise it up. I mean why even bother why even bother?
07:39The only way it goes back to 125 is FFF SD fails like it doesn't work and it kills us all
07:46I mean, that's what the scenario where that happens or or Musk shoots off his mouth and nobody ever buys a Tesla
07:52Can I so there's a couple scenarios where that can happen?
07:54I don't understand why the price target but you've got you know, you obviously have 14 sell ratings on this talk
07:59We've talked about this before we asked Brent stir the old, you know, I'm from the news desk. We were talking to him
08:05Just in saying how often do you see 14 sell ratings on something? He covered the benzinga pro news desk for a decade
08:12I'm like, he's like it's unprecedented. I've never seen it before a company with 14 sell ratings on it
08:18So this is how bearish the street is on this stock. There's a few balls, you know when we give them wet bush
08:23You know, there's a few balls out there Dan Ives been all over the story, you know
08:27And he thinks this is the most he's he said it before he said this is the most undervalued tech stock out here
08:32Underappreciated and undervalued AI play so there is some bulls out here. I've been bullish too, you know
08:37I'm one of the big bulls too, but you know, there's a lot more people than just Gordon Johnson bearish this stuff. I agree
08:43I agree