Tesla is set to report earnings – who cares?
reports earnings on Wednesday, but does it even matter? The newsflow has been dire for more than a year, with Tesla badly missing estimates in three of the past four quarters, yet the stock is up 30 per cent more than that period.
Yes, shares are down in 2025 and well off their December high, but the overall stock performance suggests investors aren't as concerned as they might be by dire sales figures in Europe and beyond.
With Tesla, the investment case keeps shifting. A few years ago, it was around scaling to 10 million cars a year. Now, says Deepwater's Gene Munster, investors would settle for two million (and 1.7 million in 2025), if autonomy shows signs of life.
He points to modest goals for 2025: expanding robotaxi testing in Austin, growing the fleet from 15 to a few hundred, and launching in a second city.
Meanwhile, expect
Elon Musk
to talk around Tesla potentially investing in his AI firm xAI, or billions of humanoid robots, or perhaps colonising Mars via a self-driving Cybertruck. Just don't expect the earnings call to dwell on actual earnings.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Times
30 minutes ago
- Irish Times
Markets subdued ahead of Trump meeting
European shares were subdued on Monday, ahead of key meetings between Ukraine, European leaders and US President Donald Trump, following a Russia-US summit that ended without an immediate agreement. Mr Trump met with his Russian counterpart Vladimir Putin on Friday and agreed that a peace deal should be worked upon without a ceasefire. Ukraine's Volodymyr Zelenskiy will meet Mr Trump along with other European leaders in a bid to draw out a peace deal that will not favour Moscow. Dublin The Dublin market got off to a poor start to the week, ending the session down 0.46 per cent as financial stocks dipped lower and constructions stocks were mixed. READ MORE Bank of Ireland was 1.25 per cent lower, falling to €13, while AIB was off almost 0.7 per cent, closing at €7.30 after hitting a low of €7.14 earlier in the day. Permanent TSB shed 0.4 per cent by the close of the session, while insurer FBD was up to €14.25, some 0.7 per cent higher. Insulation specialist Kingspan lost 0.3 per cent, while Glanbia shed 1.4 per cent. Airline Ryanair was down almost 0.5 per cent to finish the day at €26.63. London Britain's FTSE 100 closed higher on Monday, propelled by gains in healthcare and defence stocks. The blue-chip FTSE 100 finished 0.2 per cent up after dipping earlier in the session. However, the benchmark was still well below Friday's intraday record high. The midcap FTSE 250 ended little changed. Heavyweight healthcare shares primarily drove Monday's advances, rising 1.2 per cent. Aerospace and the defence sector began the week on a strong footing, advancing 1.2 per cent, with Babcock International Group jumping 5.3 per cent after brokerage firm RBC Capital Markets initiated coverage at 'outperform' rating. Among single stocks, bootmaker Dr Martens gained 8.5 per cent after brokerage firm Peel Hunt upgraded the stock to 'buy' from 'add'. Europe The pan-European Stoxx 600 index closed 0.1 per cent up, after logging a second straight weekly gain on Friday. Europe's index tracking aerospace and defence stocks was up 0.7 per cent, after falling in the last session. Most sectors on the benchmark Stoxx were lower, with a 1.6 per cent and 0.5 per cent decline in miners and heavyweight banks weighing the most. Novo Nordisk jumped 6.6 per cent after the drugmaker's weight-loss drug Wegovy received an accelerated approval by the U.S. Food and Drug Administration to treat a serious liver condition. Separately, it announced it was offering its diabetes drug Ozempic for $499 per month to eligible patients in the U.S. Other renewables also gained, with EDP Renonvaveis surging 6.2 per cent, while Orsted and RWE both gained 1 per cent each. Commerzbankfell 3.2 per cent, the most among banks, after Deutsche Bank downgraded the stock to 'Hold' from 'Buy'. New York Wall Street's main indexes were subdued on Monday, in a quiet start to a week packed with corporate earnings reports from major retailers and the Federal Reserve's annual symposium in Jackson Hole. Investors will closely monitor reports from Walmart, Home Depot and Target among others, which are expected this week, to determine how trade uncertainty and inflation expectations have affected US consumers. At 11.43am. ET, the Dow Jones Industrial Average was little changed, as was the S&P 500. The Nasdaq Composite lost 40.51 points, or 0.18 per cent, to 21,582.97. Six of the 11 S&P 500 sectors edged lower, with communication services in the lead with a 0.9 per cent fall, weighed by Facebook parent Meta's 2.7 per cent slide. On the trade front, the Trump administration widened the reach of its 50 per cent tariffs on steel and aluminium imports by adding hundreds of derivative products to the list of goods subject to the levies. Dayforce jumped 26.9 per cent after a report said PE firm Thoma Bravo is in talks to acquire the HR management software firm. Solar stocks such as SunRun rose 6.7 per cent and First Solar gained 9.2 per cent after the US Treasury Department unveiled new federal tax subsidy rules for solar and wind projects. – Additional reporting: Reuters
Irish Times
an hour ago
- Irish Times
Row threatens CityJet rescue, court told
A row over demands by contractors involving a potential investor in the refinancing of debt-ridden airline CityJet, over proposed upfront payment terms for future maintenance work, could collapse rescue plans for the company which is currently in examinership, the High Court was told on Monday. Now the joint examiners to the carrier, Kieran Wallace and Andrew O'Leary, of specialist firm Interpath Advisory, are to ask the High Court on Wednesday for declarations that the attempted modification of maintenance contracts is invalid. Barrister Stephen Byrne, counsel for the examiners, told Ms Justice Eileen Roberts that the effect of the proposed contractual amendments would have a material impact on CityJet's ability to continue in examinership. Mr Wallace, in written evidence grounding the application, told Judge Roberts that the new demands could cause the examinership to fail. The court granted the joint examiners short service to bring a notice of motion regarding the new issues before the court on Wednesday. READ MORE CityJet's sole shareholder, Strategic Alliance of Regional Airlines (SARA) which itself is 80 per cent owned by Air Investment Valencia (AIV), has significant service contracts with sister entities and subsidiaries of SARA. The court heard that a key condition for the joint examiners to any reinvestment by the shareholder entities was a renegotiation of the company's various maintenance contracts in order to facilitate the survival of the company as outlined by the joint examiners and an independent expert. Mr Wallace stated that since his and Mr O'Leary's appointment they have had regular engagement with certain shareholder entities in respect of potential reinvestment in the company as outlined in an earlier report to the High Court. He said it had become clear that the SARA shareholder entities would not make sufficiently significant concessions on contracts such as would be required to ensure a reasonable prospect of the survival of CityJet as a going concern. Demands had been made by the contractors for payments to be made up front on a monthly basis with almost immediate effect. Mr Wallace said he and Mr O'Leary had decided to pursue alternative investment proposals from other interested parties and another investment proposal had already been agreed and entered into by the company. Mr Byrne said that in correspondence with SARA legal representatives the joint examiners had stated their view it was impermissible for any contracts to be varied. The matter comes up again before Mr Justice Quinn who initially appointed the joint examiners.
Irish Times
5 hours ago
- Irish Times
Lip-Bu Tan, Intel CEO with Silicon Valley's toughest turnaround job
At the top of the to-do list for many American business leaders is a simple priority: placate Donald Trump. Anyone doubting the need to keep the CEO-in-Chief happy has just been served a stark reminder by Lip-Bu Tan, boss of chipmaker Intel. A week ago, Tan had the dubious distinction of being the most prominent American business executive whose head Trump has demanded on a plate. The presidential call for his resignation appeared to stem not from Intel's struggles and recent threat to abandon cutting-edge chip manufacturing, but from Tan's former existence as a prolific start-up investor in Chinese semiconductor companies. A hastily arranged meeting at the White House on Monday turned the tide. Trump declared Tan's rise 'an amazing story' and hinted mysteriously at 'proposals' from the company that would soon follow. Days later, it emerged that the US has discussed taking a stake in Intel in return for investing in one of its manufacturing plants. READ MORE If Tan has won over the deal-besotted president with a tempting transaction, it is a fitting sign of the times. While the White House experiments with a new form of capitalism-by-fiat, extreme political volatility has descended on the US chip industry. For Tan, a widely-respected industry veteran who landed in the top job at Intel in March, the drama has complicated what was already one of the toughest turnaround jobs in the history of Silicon Valley. 'Semiconductor leaders have had to pivot from being an industry that was under-appreciated, not understood ... to now being in the bullseye,' says Jodi Shelton, chief executive of the Global Semiconductor Alliance, an industry group. The political warning signs should have been obvious. Intel was the biggest beneficiary of the Biden administration's move to pour $39bn into reviving chip manufacturing in the US. Trump has chafed at those grants, though he has so far stopped short of killing them outright. Through Walden International, a US venture capital firm he started more than 40 years ago with just $3 million put up by family friends, Tan has played a significant role as a start-up investor in China's tech industry – investing in China's state-backed chip manufacturers SMIC and Biren Technology, as well as Sina, creator of Weibo, China's answer to X. Those deals made him a natural target for Washington's China hawks. US senator Tom Cotton wrote to Intel's chair last week asking if Tan had a 'conflict of interest'. Tan, who dismissed the queries as 'misinformation', appeared to lack the political antenna to recognise the seriousness of the threat. 'It's taken too long for him to get to Washington. He should have got there sooner,' says Daniel Newman, an analyst at The Futurum Group. That marks Tan out from his predecessor. Pat Gelsinger, who was pushed out late last year after losing the confidence of his company's board nearly four years into an attempted turnaround, worked Washington hard and positioned Intel as a national champion. On Gelsinger's watch (and with Tan on the board until last year) Intel made some headway. But it failed to meet his habitually upbeat predictions and was caught out by the surge in demand for Nvidia's AI chips. 'Intel are losing share in almost every category they're in,' says Ben Bajarin, an analyst at Creative Strategies. Tan (65) is willing to challenge orthodoxy inside one of Silicon Valley's most hidebound cultures, bringing an investor's eye to an engineer-led company. His arrival has been welcomed both in the chip industry and on Wall Street (Intel's stock has risen by more than a fifth since his appointment), though he has taken on a position few envy. 'Intel is where good reputations go to die,' says Michael Marks, a veteran Silicon Valley executive who is partner in a venture capital firm with Tan. Tan has taken a circuitous route to the top of the US corporate world. Born in Malaysia, he obtained a degree in quantum physics in Singapore before moving to the US to study nuclear engineering. By his own account, he dropped out without completing his PhD at Massachusetts Institute of Technology after the Three Mile Island nuclear disaster and moved to Silicon Valley. He went on to build Walden, his VC firm, into a behemoth with $5 billion under management. That was followed by a surprise move in 2009 to become the head of Cadence, which sells software used to design chips. The role cemented Tan's relationships with many of the semiconductor industry's leading figures. In contrast to Gelsinger's optimistic rhetoric, Tan has emphasised the deep problems besetting Intel. According to a former colleague at Cadence, he is 'demanding but very fair, very clear'. Despite taking early action to slim Intel down, the company's finances are still under pressure. Nor has Tan ended uncertainty about its strategy. Last month, he threatened to drop its push into advanced manufacturing. With the future of the last US-headquartered manufacturer of cutting-edge chips in doubt, suspicions in Washington about Tan's role as longtime cheerleader for China's semiconductor industry have been harder to quell. Learning to play by the capital's new rules is now paramount. The fate of a struggling Silicon Valley icon depends on it. – Copyright The Financial Times Limited 2025
