Stock Movers Tesla Declines; T-Mobile Beats on Subscriber Growth; IBM Slides Post-Earnings
5 snips
Oct 23, 2025 Tesla's shares tumble as profits drop despite record vehicle sales, raising concerns about rising costs and a pivot towards robotics. Meanwhile, T-Mobile reports a surge of one million new subscribers, buoyed by a recent acquisition and iPhone 17 demand, prompting an optimistic outlook. In contrast, IBM faces a downturn with disappointing growth from its Red Hat cloud unit and a decline in transaction processing software, leading to a significant drop in shares. Market dynamics are shifting!
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Record Sales, Falling Profits
- Tesla reported a record quarter of vehicle sales while profits fell, signaling strain in its core auto business.
- Rising operating expenses and $400M+ tariff costs drove a 40% drop in operating profit, raising questions about EV profitability.
Focus Shift From Cars To Moonshots
- Elon Musk emphasized robots, AI, and self-driving rather than a clear plan to revive core EV margins and sales growth.
- Investors wanted a roadmap to fix the automotive business and did not get it, which pressured the stock.
Watch Pricing And Device Cycles
- T-Mobile gained about 1 million new phone subscribers and raised its annual outlook, helped by the US Cellular acquisition.
- Consider competitive pricing and device-release cycles (e.g., iPhone 17) when evaluating carrier subscriber trends.
