From The Motley Fool · TMF Breakfast News · · 1m 40s
Tesla’s Slow Wheels, Fast Dreams
Tesla shifts gears toward AI in 2027 as EV revenue dips.
In brief
Tesla shifts gears toward AI in 2027 as EV revenue dips. Tesla expects to pivot to AI and energy ecosystem by 2027 despite falling EV revenue. Originally reported by The Motley Fool.
Tesla Expects to Shift Gears in 2027
Tesla stock slid 4% after third-quarter EV revenue fell 3% as the company focuses on building an artificial intelligence and energy ecosystem.
Operating Profit Plunges 56%
Operating profit plunged 56% but Tesla beat adjusted earnings per share estimates of $0.48 with active full self-driving subscriptions jumping 67% year over year to 1.74 million.
Free Cash Flow Falls 62%
Free cash flow fell 62% in Q3 as Tesla spent on Cybercab, Optimus, and the Texas Terafab chip plant.
AI and Energy Ecosystem
Tesla targets Robotaxi revenue in Q2 2027, Terafab test chips by mid-2027, and Optimus rollouts by year-end with $45.4 billion in cash liquidity.
Meta Accelerates, IBM Adapts
Meta’s AI assistant boosted revenue 26% and Q4 guidance beat estimates while IBM’s software grew 8% as mainframe sales stabilize.
AI Sell-Off Continues
Nasdaq futures dipped 1.6% in pre-market trading as chip stocks fell 15% in three weeks and China’s CSI 300 entered bear market territory.
AI Overweight in S&P 500
41 AI-related companies make up nearly 49% of the S&P 500 index, a market concentration not seen since 19th-century railroad stocks.
Buy in Thirds Strategy
Split investments into three purchases spaced a month or quarter apart to navigate volatile stocks without panic.
Three Earnings to Watch Today
Comfort Systems USA, Bloom Energy, and Kinsale Capital report after the close with two riding AI data center demand.
Here's the gist
Tesla expects to pivot to AI and energy ecosystem by 2027 despite falling EV revenue.
