Options Market Statistics: Tesla Third-quarter Earnings Slow, Missing Forecasts; Shares Drop and Options Pop

Tesla reported a drop in third-quarter earnings as the electric vehicle maker fell short of Wall Street expectations.

Tesla reported adjusted earnings of $2.3 billion in the quarter, or 66 cents a share, down 37% from a year earlier and the smallest profits it reported in two years. Analysts surveyed by Refinitiv had forecast a slowdown in earnings but still expected it to report earnings of 73 cents a share.

The company also missed on third-quarter revenue of $23.4 billion, up 9% from a year earlier but short of the $24.1 billion forecast by analysts. Tesla has been repeatedly cutting the prices of its vehicles to boost sales demand in the face of growing electric vehicle competition from established automakers.

Nvidia shares have continued to move lower in response to the United States government’s decision to restrict the export of advanced chips to China.

In a regulatory filing, Nvidia highlighted the possibility of export controls affecting its ability to complete product development in a timely manner. Moreover, these controls could potentially disrupt support for existing customers of affected products and their supply to regions impacted by these restrictions, the company said.

As a response to these challenges, Nvidia may need to reevaluate and possibly relocate certain operational aspects from one or more countries. On a more positive note, these challenges are not expected to have an immediate financial impact.

Morgan Stanley today reported net revenues of $13.3 billion for the third quarter ended September 30, 2023 compared to $13.0 billion a year ago. Net income applicable to Morgan Stanley was $2.4 billion, or $1.38 per diluted share, compared to net income of $2.6 billion, or $1.47 per diluted share, 1 for the same period a year ago.

James P. Gorman, Chairman and Chief Executive Officer, said, "While the market environment remained mixed this quarter, the Firm delivered solid results with an ROTCE of 13.5%. Our Equity and Fixed Income businesses navigated markets well, and both Wealth and Investment Management produced higher revenues and profits year-over-year. We completed the integration of E*TRADE in the quarter, further executing on our strategy of building revenue synergies across channels and attracting clients to our best-in-class advice offering. Our ability to gather assets, together with our strong capital position and leading client franchises, position us to deliver continued growth and strong shareholder returns going forward."