talk about a rough day not just for Tesla stock and markets but for myself 12 hours in the car it's not fun and that's why this video is coming to you guys later in the day compared to what we normally do now same as usual we will go over all of your Tesla stock breaking news what happened today in markets and what could be coming next for Tesla we'll take a look at Option activity short position all of that and we have a lot of Tesla stock news today to get into but first and foremost we should start here ashc alawami he is the head of Tesla's AI program and specifically FSD he writes an X lots of work but the team's aiming to get a feature complete for unsupervised FSD with v13 so with v13 Tesla is suspecting we will have take your eyes off the wheels full self-driving which that open opens the door to Rubble taxis and all of the other great Endeavors that Tesla will ultimately pursue but first things first you have to get fully autonomous full self-driving next up Tesla's cortex supercomputer more of it is coming online today and it's again being used to train FSD as we speak in the the last quarter alone Tesla's AI training compute went up by 75% thank to 29,000 viia h100 gpus that they installed at Giga Texas and this is something that will only get more productive in the coming days weeks and months it's also being reported that with Tesla's FSD v13 Tesla will identify the sound of emergency vehicle Sirens to know to pull over to get out of their way FSD in the past has struggled handling emergency vehicles so this should be a big Improvement the Alpharetta Georgia Police Department has proposed buying a Tesla patrol car admin cars to provide the city City's police officers a cheaper more efficient alternative they're actually considering spending $349,990 on the purchase of four Tesla Model Wise from unplugged Tesla Ford Patrol explorers cost $ 7,629 a piece and Chevrolet Taho come in at about $80,000 so this would be pretty similar to a Tesla vehicle which is only about $80,000 744 outfitted to be a police vehicle also in some big news today Ford will stop the F-150 Lightning production for the rest of 2024 starting on November 15th due to weak demand for its EVS they will resume production on January 6th which clearly this is a bad sign for Tesla's competition specifically Ford but it could be smart for Ford to do if they're just not selling as many F-150 lightnings and they don't need to keep stacking up inventory Edmond said this about the model 3 Performance they say quote everything else that we've tested that goes 0 to 60 in that time cost at least double the price no fancy launch control needed either you just Mash your foot day-to-day driveability is excellent and nearly on par with the model 3 long range which is a serious compliment the quality has improved significantly in this model the seats and armrest even have French stitching and plenty of padding it really feels like you're getting your money's worth here I can't find any major panel gaps or obvious misalignments everything seems to be put together well and fits properly Volkswagen has introduced a new month-to Monon month vehicle Subscription Service in the Atlanta Georgia area customers can borrow a vehicle for as little as a month or keep it for as long as they want just have to give Volkswagen 30 days notice before you return it to the dealership Volkswagen does not check your credit score or approve applications based on credit worthiness which they're definitely getting their money's wor worth because this is going to be anywhere in the range of $600 to $800 a month which is kind of expensive for a lot out of your average Vehicles it's also being reported that a Delaware judge is considering whether a vote by Tesla shareholders reinstated Elon musk's $56 billion pay package which the court had voided will try to issue a ruling this year according to the judge's letter this is from Kathleen McCormick this is something we covered a lot when uh the whole elon's comp package was was a big deal for Tesla and I I think it still is to a large extent but but um it says here quote I write to inform you that I aim to issue that decision before the end of this year that's all she said as far as broader markets today this was in fact the worst Halloween that we have seen at least since 1985 now markets are not open every year on Halloween so sometimes things do skip like you were open 85 86 you you were not open 87 uh 89 you were open you were not open 1990 right so things do skip around sometimes but Halloween actually tends to be a pretty good day for markets not great but good on average up 0. 34% the median return up a tenth of 1% and you tend to be higher about 67% of the time today far from a good day okay the S&P was down 1. 96% to close out the trading day clearly breaking down in a way that we have not seen in a while and this really deserves further discussion because the reason for this breakdown largely has to do with big Tech it really all has to do with big Tech earnings have actually been good earnings have not been bad at all we will discuss Apple earnings here in just a little while but Apple was kind of the weaker one Google was good Microsoft was largely good meta was largely good there's obviously small little things you can pick out here and and and and make a problem with there but generally speaking earnings were pretty damn good there's a couple different things that are going on the markets and these big tech stocks were kind of priced for Perfection so anything that's not perfect was seen as a disappointment with that said there was some areas that were not perfect and the markets well they're going to punish that if big Tech is you know or has been doing as well as they have been I think the bigger issue going on with markets right now is something we've talked about for weeks if not months and that is the election now the bond market has been pricing in election risk stocks have not and I think part of that has to do with big Tech earnings they're just such a a large component of this Market a lot of investors didn't want to make a move before these big Tech earnings were actually reported because what if they were really good what if they were really bad is the election a reason to sell big tech stocks if they're going to massively impress on earnings it just makes sense to wait until the reports are concluded to price in more of that election risk especially because the election is next Tuesday and we have a couple of trading days still like why jump ahead of pricing an election when the bigger catalyst is really big Tech earnings at least over the next couple of days hopefully that makes some sense but now I think as you get these big Tech reports that are coming out they're good not spectacular not as great as some people would want them to be wall Street's starting to shift the focus to the election that's what it seems like to me now the big earnings today that really sent things lower was Meta Meta was down 4% today as well as Microsoft Microsoft was down 6% they really just gave inline guidance if you will for data centers like it wasn't great it wasn't bad it was It was kind of mediocre and the markets sent the stock down 6% any day you have Microsoft a$3 trillion plus company falling 6% is it's going to be a bad day for the index and that happened to happen the day before or really the day of Apple earnings and Amazon earnings now apple and Amazon it's there's a huge difference here Amazon was much better Apple was weaker even the most important metric of Apple earnings came in not good that was Services Services missed everything missed on Apple earnings besides iPhone and yes on the conference call in which I had the luxury of having the time to listen to today there was a lot of I I don't want to call it pumping because that sounds like like a pump and dump kind of you know stock I don't think that's what it is but it sounded like a lot of pumping in regards to AI Apple reference this new iPhone is really a change for the Apple um comp itself and again in due time that will be true but in the near term that's not enough to get Wall Street excited when you have lackluster results so far for Apple intelligence the bulk of the features that average people are probably going to love which is like editing stuff out of a picture or using chat GPT to help um you know integrate that with other apps right more mass Market features besides just summarizing your notifications uh you know summarizing your emails for you like that is the average person going to subscribe to that FS that that that service right for Apple intelligence probably not okay so the results were just not good enough to justify where apple is trading at and I think there's even more concerns with apple than all of what we've talked about specifically as you can see here this article from yahooo Finance says Apple earnings underline Apple intelligence is key according to this analyst and and they say here quote Apple hasn't really grown iPhone sales for the last 3 years expectations now are that it can actually grow at 5 to 10% for a variety of reasons but really the important one is Apple intelligence the analyst notes that artificial intelligence features are key to Apple's growth he says if they can't roll out the Apple intelligence features in a timely way if consumers don't have as positive experience as my early experience with apple intelligence has been then it's going to be harder to compel people to upgrade even if there is an aging Phone Base so basically what they're saying is if Apple intelligence does not impress people it does not push people to upgrade to a new iPhone they're not going to upgrade to a new iPhone and wall Street's expectations of iPhone sales really picking up are going to be wrong and that's a problem because apple is really a no Growth Company and they're priced for growth they're priced for a lot of growth now Apple CEO Tim Cook says the adoption of iOS 18.
1 is twice as fast as iOS 17. 1 last year which I mean is that good I'm I'm I'm sure it's a good sign but is does that have any correlation to his Apple intelligence going to be successful in the short term or not I don't think you can draw that conclusion and that's kind of I think why Apple stock is not reacting to it because it it just doesn't tell us enough Apple CEO Tim Cook also says that Apple intelligence marks a new chapter for our product and I think Apple intelligence is going to be wildly successful given enough time if there is a company that will Bridge AI into the the mass population it will be apple and apple will be wildly successful that will happen but is it going to happen overnight is it going to happen even in the course of a year or two probably not this is going to be a trend that catches on over the course of the next 3 to 10 years but I I don't think we should expect some huge upgrade cycle because the iPhone 16 is is really just iPhone 15 repackaged with slight upgrades like slight features here and there it's not something that is is going to compel people to go out and buy a new iPhone at least not 10% you know 5 to 10% additional growth there right Apple intelligence is not going to be that yes Apple did try to pump this up a little bit and I do think they're being honest here this is a new chapter for the iPhone but it's just going to take more time than Wall Street wants wants to recognize and I think that Reckoning is starting now now does this mean Apple needs to collapse from here obviously not Apple at the time of recording this video is down 1. 44% in after hours this in the grand scope of things is really not a big deal okay Apple's down to $222 15 per share like is that the end of the world clearly not but it's also not enough to really Propel markets higher it's it's just not great it's not terrible it's not it's not great the Spy is up 0.
2% in overnight trading and a lot of that really comes down to Amazon if if Amazon had had bad earnings things would not be nearly as as good as potentially they look even now and you're only up. 2% so let's give a rundown of the actual earnings from Apple Revenue came in at 9493 billion estimate was 94. 3 6 billion so be a little bit there is that super impressive impressive not really but it's still good let let's let's not totally downplay it here EPS came in at 97 versus a46 a year a year earlier on a year- viye basis that was a big Miss but it really had to do with a a big $10 billion one lump Su tax payment the adjusted EPS if you take that out was .
64 which handsomely beat the year-over-year numbers products Revenue 69. 9 6 billion versus 69. 1 15 billion so they actually beat there in aggregate iPad Revenue came in at 6.
95 billion estimate 7. 07 billion so they missed there total operating expenses came in at 14. 29 billion versus 14.
35 billion that was a beat because that's operating expenses so they spent less money than Walsh she was expecting that's good greater China Revenue came in at 15. 03 billion estimate 15. 8 billion that was a Miss Mac Revenue came in at 7.
7 4 billion versus estimates of 7. 74 billion that was right on estimates iPhone Revenue came in at 46. 2 two billion versus estimates of 45.
4 billion so that was by far the best metric of Apple's earnings the big reason why apple is down though besides you know Apple intelligence not really giving us anything to hold her hats on like getting very vague kind of references to how successful Apple intelligence is going to be in the near term because again we didn't get we didn't get much from Apple out of guidance if you will for Apple intelligence Services Revenue Services revenue is typically the most important segment for Apple like whether or not the stock goes up or down really hinges on Services revenue and services came in at 24. 9 7 billion the estimate was 25. 2 7 billion so this was about a $300 million Miss is this the end of the world no is this great no this is on the bad side or on the you know it's not terrible but it's not good right so when you have a situation like that you get Apple down 1 and a half 2% and and and that's that's honestly pretty appropriate wearables and home and accessories came in at 9.
48 billion versus estimates of 9. 17 billion so that missed estimates and apple declared a cash dividend of25 cents per share so Apple earnings by far look the worst out of your big tech stocks which is something I have been expecting and if you wanted to look at the heat map from unusual whales Nvidia was also down a lot broadcom AMD Qualcomm uh Oracle Microsoft paler like anything that has to do with tech got destroyed today Amazon Q3 earnings EPS came in at43 versus estimates of $16 net sales came in at 158. 3 billion AWS so that was a bat AWS net sales 27.
45 billion versus estimates of 277. 49 billion so that actually missed a little bit operating margin came in at 11% versus estimates of 9. 34% much better than expected operating income came in at 17.
4 billion versus estimates of 14. 75 billion that's almost a three billion beat there physical stores net sales 5. 23 billion versus estimates of 5.
17 billion uh decent beat there North America net sales 95. 54% 5 billion to 188. 50 billion the estimate was 186.
