Red Close for Markets; Tesla Dips After the Bell 23/10/2025

HOT stories for today

Market wrap:

• US equities retreated Wednesday as technology shares led a broad selloff following disappointing results from Netflix. The S&P 500 slipped about 0.5%, while the Dow Jones Industrial Average dropped 334 points, or 0.7%. The Nasdaq Composite fell 0.9% as investors rotated out of higher-risk growth stocks. Sentiment weakened further after Treasury Secretary Scott Bessent said the White House is weighing new measures to restrict exports to China involving US-made software. This move would extend President Trump’s earlier pledge to impose broad technology export limits by Nov. 1. 
• Meanwhile, the administration unveiled fresh sanctions on Russia’s two largest oil producers, citing “a lack of meaningful commitment to peace in Ukraine.” Oil prices surged 3% on the announcement. IBM topped Wall Street estimates and raised guidance, yet shares slipped in after-hours trading. In the digital assets market, Bitcoin and Ether stabilized after steep declines earlier in the week, although smaller tokens continued to remain under pressure. Markets now turn to Friday’s key CPI report, which could prove pivotal for the Federal Reserve’s policy outlook as the prolonged US government shutdown edges closer to a critical point.

Tesla revenue rebounds, profit misses as costs surge

• Tesla (TSLA) posted a 12% rise in third-quarter revenue to $28.2 billion, ending two quarters of declines, but earnings fell short, pushing shares down nearly 5% in late trading. Automotive sales increased 6% to $21.2 billion, while net income declined 37% to $1.37 billion, or 39 cents per share, as lower EV prices and soaring R&D expenses, notably in AI, squeezed margins. Sales were lifted by a pre-expiry rush for federal EV tax credits under President Trump’s spending bill. Revenue from regulatory credits, however, fell 44% to $417 million. Weak demand in Europe persisted amid consumer backlash against Elon Musk and tougher competition from BYD and Volkswagen.
• Tesla offered little guidance but reaffirmed plans to begin “volume production” of the Cybercab, Semi truck, and Megapack 3 in 2026. Musk said Cybercab output could start in Q2 and teased a debut for the Optimus V3 humanoid robot next year. Energy storage remained Tesla’s bright spot, with revenue jumping 44% to $3.42 billion, about a quarter of total sales, helped by orders from Musk’s AI venture xAI. The company stated that its Robotaxi fleet in Austin could become fully autonomous this year and expand to 10 metro areas by the end of 2025. Shares are up 9% in 2025 but continue to lag major indexes as investors balance Musk’s long-term AI vision with short-term margin pressures.

Stocks on the move:

• Southwest Airlines (LUV): Shares gained 2% after a surprise quarterly profit. Adjusted EPS was 11 cents vs. a 3-cent loss expected, with revenue of $6.95 billion topping forecasts.
• International Business Machines (IBM): The stock fell 4% as software revenue met estimates, though consulting and infrastructure beat. IBM earned $2.65 a share on $16.33 billion in revenue, above forecasts.
• Moderna (MRNA): Shares slid nearly 6% after its Phase 3 CMV vaccine trial missed its main efficacy goal. The company stated that the setback will not impact its 2025 guidance.
• Las Vegas Sands (LVS): Shares jumped over 6% after Q3 results topped estimates. EPS was 78 cents on $3.33 billion in revenue, beating forecasts, with an upbeat outlook ahead.

Watchlist: IBM, TSLA, LRCX, LVS, LUV, UNP, HON, OKLO

Key Economic Events Today:

EST time

10:00 am: USD Existing Home Sales
10:25 am: USD FOMC Member Barr Speaks


Earnings

BMO (Before Market Open): American Airlines Group ($AAL), Nokia ($NOK), Blackstone ($BX), Mobileye Global ($MBLY), and Valero Energy ($VLO)
AMC (After Market Close): Intel ($INTC), Ford Motor ($F), and Alaska Air Gr ($ALK)



The TEFS Analyst team wishes you a successful day!