As Tesla (TSLA) shares moved higher after the company’s third quarter report, Interactive Brokers chief strategist Steve Sosnick sat down with Julie Hyman and Josh Lipton to discuss the results and how he thinks about the electric vehicle (EV) giant.
“Basically, this is a hard story to poke holes in, and you really can’t, which is why the stock is up 20%,” Sosnick says, adding that “It was not as much that they beat on their current EPS, which is of course very important, but it’s that the guidance was really terrific and they beat in the right ways. Margins expanding, talk of higher sales going forward, double digit higher sales in the next year.” The strategist says, “We’ll see if that’s achievable. But that’s what the market wants to hear,” adding that Tesla proved the bears wrong.
He explains, “Tesla is a bit of an outlier at this point" compared to the rest of the Magnificent Seven group” as Nvidia (NVDA), Alphabet (GOOG, GOOGL), Microsoft (MSFT), Amazon (AMZN), Meta (META), and Apple (AAPL) are “sort of all in the same turf there and Tesla’s really not.” Sosnick says he thinks there are two eras of Tesla: before Musk bought Twitter and after the transformation to X. “Since then it’s really people have started to value it a little more carefully, whether it’s because of the Twitter acquisition or whether it’s just because of maturation.”
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