🚀Tesla: Good Earning, Muted Response🚀

The EV pioneer had a good set of results that squarely beat Wall Street’s estimate. Shares were down, though, as investors expect more out of Tesla.

Earnings per share stood at $1.86 from $13.8 billion in shares, well ahead of the $1.67 expectation, although it missed the forecast for sales of $13.9 billion. Deliveries of 241,000 vehicles are about up to 15,000 more than projected despite the backdrop of semiconductor shortage.

The robust delivery had supported the stocks thus far, which had gained around 12% since the news of healthy delivery figures. Moreover, Pika World’s top concern gross profit margins came in remarkably resilient at 27%, a tick up from 24% last quarter.
Most importantly, we saw automotive gross margin reaching 30.5% even when less revenue comes in from the sale of regulatory credits. The superior result could be a result of larger volumes from existing plants that provided the economies of scale to improve margins.

Pika World remains a long-term investor and has consistent exposure to the stock, and we continue to look for accumulation entry.

🧨Inflation Could Get Worse🧨

According to a macro strategist, while the narrative of transitory inflation has been the call, more voices are calling for more lasting inflation. As seen, the explosive growth in money supply has elevated the economy out of a record contraction that pushes almost everything higher: food, housing, stocks have all risen persistently.

As Pika World set sight on the FOMC meeting on 3 November, we are hopeful that the tapering pace and schedule will not unnerve the market and provide more certainty to come.

⛽️Novavax: Struggling to Produce🥊

Shares had plunged drastically as it has an issue with producing vaccines that can meet the US standard. In July 2020, at the pandemic’s peak, the US government had provided $1.6 billion in financing to boost the company’s ability to create and manufacture the vaccine.

At the heart of the problem is the inability to produce a vaccine that meets the purity levels required by the FDA. Still, the company plans to file for emergency use in the US by the end of 2021 and fulfilled its doses in the US and globally.

📮What’s on the Menu Today?

At 8.30 pm, we will have the initial jobless claims, which we expect to rise slightly to hit 300k.

Existing home sales for Sep will be released at 10 pm, and we expect to see a rise to 6.09M from 5.88M.

It is 21 October, Thursday, 7.15 am in Singapore and 7.15 pm in New York. We have passed the mid-week, and Pika World wishes all friends a smooth sailing day!