Tesla’s stock surged on robust Q3 earnings, boosting the Nasdaq. Meanwhile,
Elon Musk muses about driverless car policy as a White House appointee.
Tesla’s Stock Jumps Higher Than Q3 Expectations
In a tech landscape braced for mixed earnings, Tesla delivered a
welcome surprise with its Q3 report, sending its stock soaring 17% immediately
after. Elon Musk and his electric
empire made an impression on Wall Street with quarterly numbers that went
well beyond the tempered expectations of analysts. Despite challenges in an economic
climate that’s had many tech companies bracing for impact, Tesla managed to rev
up demand while controlling costs, ensuring leaner but nonetheless impressive
margins. Amid struggling artificial intelligence (AI) firms and stuttering
giants like Intel, Tesla is one tech firm that’s making waves.
Q3 2024 Shareholder Update → https://t.co/sXBSeLibSL— Highlights- Produced our 7 millionth vehicle at Fremont factory!- Preparations for new vehicles remain underway (including more affordable models), which we’ll begin launching in the first half of 2025- Record gross… pic.twitter.com/is1UhqdH7r
— Tesla (@Tesla) October 23, 2024
Investors took note. Shares of Tesla rallied sharply, with financial
analysts commending Tesla’s flexibility and prowess in an industry still
figuring out how to stay profitable as EV markets get more crowded. Musk’s
company has found ways to cut costs while keeping up production, sidestepping
the turbulence that’s left other tech giants teetering on market uncertainty.
Tesla Gives the Nasdaq a Boost—Because, Of Course, It Does
Tesla’s stock spike didn’t just keep investors happy; it also injected
much-needed momentum into the broader market. When a tech titan like Tesla
surprises to the upside, it’s like a jolt of electricity to the indexes. The Nasdaq
got a noticeable lift (0.6%), adding points as Tesla’s gains echoed through the
indexes.
The Nasdaq and S&P 500 increased, thanks to Tesla’s positive earnings forecast. However, stocks have retreated from record highs amid concerns over Federal Reserve rate cuts, rising Treasury yields, and uncertainty ahead of the US election https://t.co/yTUT4T6fbP pic.twitter.com/CJFlHPzLEu
— Reuters Business (@ReutersBiz) October 25, 2024
It’s no secret that Tesla’s high valuation has it standing toe-to-toe
with the likes of Apple, Microsoft, and Amazon when it comes to moving markets.
As one of the most heavily weighted stocks in these indexes, Tesla’s success
translates directly into a broader stock surge, lifting confidence across the board.
In a financial season where Wall Street has felt the tremors of a shaky
economy, Tesla’s unexpected strength suggests that, just maybe, tech isn’t
entirely down for the count.
Elon Musk on Driverless Cars—What If He Had a Say in the White House?
Because it wouldn’t be a Tesla earnings season without some Elon-esque
musing, Musk recently let slip his vision of driverless car policy if he were
hypothetically running the show in Washington, D.C. Picture it: Elon Musk,
self-styled driverless czar, sipping coffee in the West Wing while fielding
questions from Congress about why his hypothetical legislation would allow
Teslas to cruise freely down the highway with barely a whisper of regulation.
Musk’s thoughts on autonomous vehicles have always been… ambitious, and
his tone while considering a hypothetical White House gig was … whimsical. “National
approval [for electrical vehicles on public roads] is important,” Musk
said Wednesday during the earnings call. “If there is a Department of
Government Efficiency, I will try to make that happen.”
Congratulations, Jason of Michigan! https://t.co/lV1EWLRiH6
— Elon Musk (@elonmusk) October 25, 2024
I think he wants Trump in.
The Department of Government Efficiency (DOGE) Musk is a commission
proposed by Musk and Trump. According to Trump, Musk has agreed to
lead the proposed task force, where he would be “conducting a complete
financial and performance audit of the entire federal government” and
recommending reforms.
If given free rein in the White House, Musk would cut through
regulatory roadblocks with gusto, creating a fast-track policy that would leave
traditional automakers catching up. For a guy who’s publicly skeptical of
government oversight, the idea of him wielding regulatory power is both humorous
and, depending on who you ask, a bit chilling. Musk sees the driverless future
as a highway with no speed limits and minimal red tape—he’d rather his cars
drive themselves into the future without the hindrance of bureaucracy.
His hypothetical stint as America’s driverless car guru might just be
the twist Wall Street didn’t see coming. After all, this is the same man who’s
floated everything from colony plans on Mars to tunnels under L.A., driverless
car legislation would only be the beginning.
Tesla’s Bright Spot in Tech’s Rocky Season
Tesla’s Q3 earnings might feel like a breath of fresh air, especially
given the gloomy forecast that many tech firms have issued for the latter half
of 2024. While some giants are scaling back on spending and innovation amid
economic turbulence, Tesla’s continued strength stands out. By tightly managing
its supply chain, finding efficiencies, and strategically pricing its vehicles
to maintain demand, Musk’s company has kept itself in the driver’s seat even as
other automakers grapple with shrinking budgets and the pressure of global EV
competition.
But for Tesla, it’s about more than just surviving; it’s about thriving
in a market where even the best tech firms have struggled to stay nimble. With such
an impressive jump on its stock, Musk’s brand is driving the message home: that
even in challenging markets, there’s room for the right tech companies to find
success.
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This article was written by Louis Parks at www.financemagnates.com.
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