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Early Earnings Follow Banks With Earnings Surprises

Earnings reports

As we’ve noted, we’re entering the thick of Q3 earnings season — and that means that it’s time to reflect on the health of the markets, and the broader economy as well.

Tesla Dips, But Reaffirms Full-Year Auto Delivery Outlook

Tesla spiked, then fell, after the market closed on Wednesday — and they have their Q3 earnings to thank for the chaotic trade.

The company missed on its revenue forecast, but beat on its earnings by a small margin. All the while, the company’s automotive revenues climbed to new highs — they were up 55% YoY, an astounding growth figure for a company of its size.

The company faulted its revenue miss to negative foreign exchange impacts — an impact of the strong dollar — which cost them an estimated $250 million. Analysts also noted pricing pressures and higher commodity prices had an impact.

However, more car sales and growth in other parts of the business helped.

The company also set a fresh record for production in China. Tesla can now build more than 750,000 vehicles per year at its Shanghai factory and set a record for cars delivered in September — 83,135 deliveries.

Elon Musk stressed that the company would consider a buyback of Tesla stock next year and added that, “for the first time, I am seeing a way for Tesla to be roughly twice the value of Saudi Aramco.” (Saudi Aramco is the world’s most valuable company and a state-owned oil conglomerate of the Saudi Arabian government.)

However, Musk’s comments on the call might be shadowed by interest around his Twitter deal.

Related: Latin American Countries Mull Cooperation As Lithium Leaders Heat Up.

Netflix Claws Back Losses, Bringing Subscriber Beat

Analysts had warned that the best days might be behind Netflix, but its earnings report on Tuesday proved otherwise.

The company delivered 2.4 times more subscribers than it forecasted, reversing the company’s subscriber declines from the last three quarters.

The company indicated that it was growing slower than it had hoped, indicating it would stop guiding subscriber growth estimates next year. However, in the near term, analysts were happy.

The stock surged nearly 13% after the company’s report, its largest gain since January 2021. It did some concessions — the company said it would make efforts to curb password sharing early next year.

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