Netflix shares drop to 26-month low despite revenue growth
Netflix stock fell to $64.10, a 26-month low, after a weak Q4 forecast offset better-than-expected Q3 earnings.
Tesla said on its earnings call it targets 5 million vehicles per year by 2030 and that 2027 Megapack capacity is nearly sold out.
Tesla's third-quarter energy shortfall is reframed by the call as a supply bottleneck rather than weak demand. That framing could soften the impact of the segment's notable revenue miss, especially given management's outlook for substantially higher storage margins. On the financial side, a cash and investment pile exceeding $45 billion, capital expenditure largely covered by operating cash flow, and no intention to tap new credit lines this year indicate a solid funding position. That should help allay concerns around the costs of its autonomy and chip projects. Still, the $30 billion facility points to heavier outlays in future years. Market-to-market fluctuations on SpaceX and Bitcoin positions add volatility to reported profits. Combined with Musk's refusal to expand on his SpaceX merger remarks, those swings keep the corporate link under scrutiny.
---
Earlier:
---
Revenue from Tesla's energy division fell short, but management argues demand is not the issue, as Musk highlighted a fully booked Megapack order book alongside new volume goals, robotaxi and chip ambitions, all supported by a balance sheet with significant reserves.
Key points:
CEO Elon Musk said during Tesla's third-quarter earnings call that the company plans to produce about 5 million vehicles a year by 2030 and will raise output to satisfy demand. Management also noted that demand for energy storage products remains robust, despite a significant revenue shortfall in that segment.
Nearly all of Tesla's 2027 capacity for the Megapack grid-scale battery system is already booked, management reported. Production is being accelerated as fast as possible to keep up. Tesla anticipates a meaningful improvement in energy storage gross margins, along with substantial growth after several years of stagnation. Those remarks indicate that the third-quarter miss in energy generation and storage revenue — about $2.9 billion versus forecasts near $3.9 billion — stemmed from supply limits rather than falling demand.
Tesla also pointed to progress in self-driving technology. Fully autonomous miles are climbing rapidly, with strong week-over-week acceleration, and the Cybercab fleet in Austin has grown roughly tenfold since its launch about a month ago. Management sees major potential to scale robotaxi operations, though it did not disclose absolute fleet size or mileage.
Regarding chip production, Tesla said machinery commissioning is set to start in the first half of 2027. First test chip output is targeted for May to June 2027, depending on successful commissioning, with an initial focus on proving basic manufacturing skills.
On finances, Tesla revised its full-year capital expenditure forecast to about $20 billion, attributing the change to more efficient capital use. It plans to fund capex mostly from operating cash flow. The company has also lined up up to $30 billion in additional borrowing capacity to support future capex growth, but has no plans to draw on those facilities in 2026. Tesla ended the quarter with more than $45 billion in cash and investments and free cash flow above $1.5 billion.
Net income took a hit from a mark-to-market loss of about $140 million on Tesla's investment in SpaceX. That was offset by a gain of roughly $290 million on its Bitcoin holdings. When asked about a possible merger with SpaceX, Musk declined to comment further, saying he had already addressed the matter fully during the previous day's SpaceX call.
The call comes after third-quarter results that beat expectations on adjusted earnings, gross margin and free cash flow, while revenue narrowly missed. The energy ramp, robotaxi expansion and future spending trajectory are likely to be central topics as investors gauge whether Tesla can convert these ambitions into lasting growth.
Share to
Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
Netflix stock fell to $64.10, a 26-month low, after a weak Q4 forecast offset better-than-expected Q3 earnings.
JPMorgan increased its SpaceX target to $500 on AI growth and outlined a potential Tesla merger with a 30-35% premium.
Meta detailed a planned 2-for-1 stock split and confirmed that a $9.9B charge drove its Q3 profit shortfall.
Meta beat Q3 revenue and EPS estimates but operating income missed, and expense guidance rose on $9.9B legal charge. Q4 revenue view above consensus.