I am never optimistic about Tesla beating expectations. I think it remains to be seen if the ‘chip strategy’ pivot will really pay off. Where the cars are concerned, competition is too stiff. The rest are making better, cheaper cars with longer lasting batteries.
Among the magnificent seven, I remain the most bullish on Apple. The iPhones remain popular and demand remains hot in its biggest market ie the Chinese market. The Chinese consumers are willing to pay for the phone. Also, I expect it’s venture into better wearables to pay off.
I think a 19% EPS growth for the S&P might be a little hard to pull off. This is insanely bullish. This quarter is affected by the war, concerns of inflation as well as a consequently hawkish Fed which has not promised a rate cut. I expect consumers to be more prudent with their money. However, institutions might still be ‘forced’ to spend for their AI investments and growth is expected there. DYODD
Tesla Beats but Raises Capex to $25B — When Will AI Pay Off?
Tesla shares swung sharply after hours, initially rising before reversing on Q1 results. Revenue beat estimates as management refocused the narrative on AI robotics and Robotaxi, but Musk's call remarks triggered intraday selling after HW3.0 hardware was explicitly flagged as lacking full FSD capability, disappointing existing owners awaiting upgrades. With capex guidance expanded to $25B for AI and autonomy, institutions remain divided on margin dilution. When will the transformation materialize — and can FSD sustain the narrative through year-end? Is Tesla now a two-way trading opportunity?
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