Tesla earnings: Wall Street insiders talk reasons to be bullish and bearish

About this video

• Video Title: Tesla earnings: Wall Street insiders talk reasons to be bullish and bearish
• Channel: Yahoo Finance
• Speakers: (Not explicitly stated, but implies multiple analysts and potentially moderators)
• Duration: 23:38

Overview

This video discusses Tesla's Q3 earnings report, featuring insights from financial analysts who present both bullish and bearish perspectives on the company's future. Key topics include EV demand post-tax credits, the potential of autonomous driving and robotics, and Elon Musk's controversial pay package.

Key takeaways

• Q3 Earnings Mixed: Tesla's Q3 adjusted EPS missed consensus, but revenue and free cash flow beat expectations. Gross margins were also better than anticipated.
• EV Demand Concerns: A bearish view suggests Tesla's EV sales potential may have been maxed out around 1.9 million units annually, with potential declines in the coming year due to the expiration of EV tax credits in the US.
• Autonomous Driving Debate: While bulls see autonomous driving and robotics as key growth drivers worth trillions, bears are skeptical about the timeline, profitability, and Tesla's first-mover advantage compared to competitors like Waymo, and express concerns about regulatory hurdles and data export issues in China.
• Elon Musk's Pay Package: There's significant disagreement on Musk's $1 trillion pay package, with some calling it absurd and potentially illegal, while others believe shareholders will approve it, incentivizing Musk to achieve ambitious growth targets.
• Apple and Microsoft Earnings Preview: The discussion briefly touches on upcoming earnings reports from Apple, highlighting a surprise upgrade cycle for the iPhone, and Microsoft, noting its strong position in enterprise AI workloads.