Tesla’s Strong Q3 Boosts Stock

TESLA
Tesla’s Strong Q3 Boosts Stock

Tesla shares jumped 10.7% in premarket trading after reporting stronger-than-expected third-quarter earnings, despite a slight revenue miss. The company posted earnings per share of 72 cents, beating analyst estimates of 58 cents. Revenue reached $25.18 billion, just shy of the expected $25.37 billion, but still an 8% increase from last year’s $23.35 billion. Net income rose to $2.17 billion, up from $1.85 billion a year earlier.

CEO Elon Musk projected at least 20% vehicle growth next year, driven by lower-cost vehicles and advancements in autonomy. He suggested that all future Tesla cars would be capable of self-driving, and highlighted that the company is currently producing about 35,000 vehicles with autonomous features weekly. While fully autonomous cars aren’t yet approved for independent operation, Musk aims to offer driverless ride-hailing services in Texas and California by 2025.

Tesla also highlighted the success of its Cybertruck, which became the third-best-selling fully electric vehicle in the U.S., following the Model 3 and Model Y. Additionally, Tesla's energy and storage revenue soared by 52%, while its Full Self-Driving (FSD) feature generated $326 million in revenue.

Despite strong earnings, Tesla faces increasing competition in the electric vehicle market, particularly from Chinese automakers and U.S. legacy brands. Musk’s political support for Trump and criticism of government regulations add another layer of complexity as the company navigates economic headwinds and competition.
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CRYPTO
Trump Win Could Boost Bitcoin

Jeff Park, Bitwise’s head of alpha strategies, has made a bold prediction: if Donald Trump wins the 2024 U.S. presidential election, Bitcoin could surge to around $92,000. In an October 22 post on X, Park explained that using “merger arb-style probability math” to chart Bitcoin’s price against Trump’s odds on the decentralized betting platform Polymarket indicated a high probability of this scenario. Park’s analysis suggests that a Trump victory could be a major catalyst for Bitcoin, given the former president’s pro-crypto stance.

Several analysts and crypto influencers have echoed this sentiment. Bitcoin millionaire Erik Finman believes that a Trump win could push Bitcoin even higher, up to $100,000, stating, “His policies will ignite the crypto market, fueling massive growth across the board.” Trump has made pro-crypto policy a cornerstone of his 2024 campaign, vowing to turn the U.S. into the “crypto capital of the world” and promising to fire SEC Chair Gary Gensler on his first day in office.

However, not everyone is convinced of long-term gains. Mark Cuban, a billionaire investor supporting Kamala Harris, believes that a Trump win would lead to a temporary spike in Bitcoin prices, followed by a decline. Cuban argues that some of Trump’s proposed policies, like controversial import tariffs, could increase inflation and hinder Bitcoin’s long-term price growth.

With national polls showing Harris leading Trump by a narrow margin of 1.8%, the outcome remains uncertain, making the potential impact on crypto markets even more intriguing.
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BARCLAYS
Barclays Shares Surge on Profit Beat

Barclays shares surged to a nine-year high after the bank reported a 23% increase in third-quarter net profit, reaching £1.6 billion ($2 billion) and beating analysts’ expectations of £1.17 billion. Revenue came in at £6.5 billion, slightly ahead of the forecasted £6.39 billion. The stock climbed 4.3% following the announcement, marking its highest level since October 2015.

Barclays’ return on tangible equity improved to 12.3% from 9.9% in the previous quarter, while its CET1 ratio, a key measure of financial strength, rose to 13.8%. The bank’s domestic lending business contributed to these gains, supported by a strategic overhaul aimed at reducing costs and enhancing shareholder returns.

CEO C.S. Venkatakrishnan expressed optimism, noting that net interest income (NII) had expanded for two consecutive quarters in the U.K. He revised the bank’s full-year NII outlook to above £11 billion. Analysts from Citi praised the results, highlighting upgraded guidance for the domestic business.

Barclays’ shares have risen 55% year-to-date, reflecting investor confidence in its strategy to focus on higher profitability and controlled costs amid a challenging economic environment.
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BOEING
Boeing Workers Reject Contract, Strike Continues

Boeing’s troubles deepened as factory workers rejected the company’s latest contract offer, extending their six-week strike. Union leaders in Seattle reported that 64% of members of the International Association of Machinists and Aerospace Workers voted against the proposal, which included pay raises of 35% over four years. Workers are pushing for the restoration of a traditional pension plan, frozen a decade ago, and improvements in benefits.

Union leader Jon Holden emphasized that workers are seeking fair compensation after years of sacrifices. Boeing’s response to the rejection has been minimal, with no immediate comment from the company. The ongoing strike has halted production of the 737 Max and other key jetliners, depriving Boeing of vital cash flow.

The labor standoff comes amid a challenging year for the aerospace giant, which reported a third-quarter loss exceeding $6 billion. CEO Kelly Ortberg, facing his first major test since taking over in August, has called for a “fundamental culture change” to restore trust and repair relationships with workers.
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Meme of the day

Word of the day
Garnish

To garnish food or drink is to add decorative and tasty touches to it, such as a spiral of lemon peel.

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