Episode 171: Today, Ann breaks down Tesla’s first-quarter earnings: strong headline numbers, but revenue that missed Wall Street expectations. Then Carolyn Aronson, founder and CEO of It’s a 10, joins the show with an inside look at the beauty industry – including what it takes to stay competitive as trends shift. Plus, Lululemon names a new CEO, Netflix bets on itself with a $25 billion stock buyback program and Microsoft and Meta adapt to rising AI costs. Finally, new moves in rideshare: Lyft bets on London’s black cabs, and Uber teams up with Block in a new global partnership. Learn more at Schwab.com/trading www.brewmarkets.com Subscribe to the Brew Markets newsletter: https://www.morningbrew.com/brew-mark... Follow Brew Markets on social: Instagram: instagram.com/brewmarkets TikTok: tiktok.com/@brewmarkets X: x.com/brewmarkets Follow Ann Berry on social: Instagram: instagram.com/annberry_nyc X: x.com/AnnBerry_NYC Listen to Brew Markets Here: swap.fm/l/9Qk4z73Z2nEwFiCB4qee Watch Brew Markets Here:⁠ https://www.youtube.com/@BrewMarkets An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing. RAAX is distributed by Van Eck Securities Corporation, Distributor. Stocks mentioned: $TSLA $MSFT $META $UBER $XYZ $LYFT $LULU $NFLX The content shared on this podcast is for informational and entertainment purposes only and should not be considered financial, legal, or investment advice. Brew Markets, Morning Brew and their hosts are not licensed financial advisors. Listeners should conduct their own research and consult with qualified professionals before making any financial decisions or investments. The views expressed are those of the hosts and guests and do not necessarily reflect the views of Morning Brew or its affiliates. This podcast may include paid endorsements or sponsorships Learn more about your ad choices. Visit megaphone.fm/adchoices

Tesla’s Earnings Raise a Bigger Question & What’s Driving One Key Consumer Sector

Brew Markets

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**Podcast:** Brew Markets

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Filled with mega-deals, celebrity brands and rollercoaster share price rides, there's one sector that investors love to track for consumer insight. We welcome It's a 10 founder Carolyn Aronson for her insider scoop on the beauty industry. Netflix has a new bet after it loses out on Warner Brothers Discovery. We break down the latest. Plus today's news from Microsoft, Meta and Lululemon and the latest from Uber and Lyft.

And Tesla. Earnings out, we get under the hood to see where Musk may take the multi-hyphenate company next. For Thursday, April 23rd, it's Brew Markets Daily and I'm Ann Berry. More market details to come, but first, Tesla. Last night reporting first quarter earnings that at first glance looked solid. A reminder of the magic of Musk as the market prepares for his SpaceX to IPO.

But underneath, Tesla's report told a more complicated story and raised one specific question for me. Tesla's headline numbers were strong. Revenue coming in around $22 billion, up about 16% to 17% year over year, and with adjusted earnings beating expectations at 41 cents per share. Margins, all-important margins, also improved. And Tesla generated positive free cash flow. So from a pure financial standpoint, this was a pretty good quarter.

But here's the catch. That revenue missed Wall Street expectations. Now, one area that investors have been watching closely is Tesla's energy and battery business. A long-term bright spot with strong margins and growing strategic importance. But in this last quarter, performance actually softened. Energy generation and storage revenue fell about 12% to roughly $2.4 billion. And deployments came in at just 8.8 gigawatt hours, well before expectations.

Perhaps most importantly, the core auto business is showing cracks. Vehicle deliveries came in lighter than expected. And competition keeps on intensifying globally, especially from Chinese players BYD and Xiaomi. Well, one nugget that stood out is that the auto disruptor is faced with its own OG innovations aging out. Because on the earnings call, Musk said that older model Tesla vehicles that feature hardware 3 computers

likely won't be able to use the company's upcoming unsupervised FSD systems. And just cutting through that acronym, these FSD systems are intended to enable Tesla cars to have driverless operations, meaning safe for use without active human supervision. To handle the technology mismatch, Tesla said it plans to set up a discounted trade-in for cars that have the older hardware and will allow customers to upgrade their car computers and cameras to enable future self-driving system use.

Costly moves, but necessary to keep Tesla on the cutting edge of auto. Which is why the most interesting story in all this isn't really about cars anymore. It's about a pivot to other things. Musk used the earnings call to double down on Tesla's future as an AI and robotics company. We heard updates on robo-ta...

Tesla’s Earnings Raise a Bigger Question & What’s Driving One Key Consumer Sector

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Tesla’s Earnings Raise a Bigger Question & What’s Driving One Key Consumer Sector

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.