“Unveiling Tesla’s Most Concerning Q3 Red Flag and Market Insights: Insights from Morgan Stanley”

Tesla Daily: All the Latest News and Updates

Tesla has been in the news lately, with updates from its gigafactories in Shanghai, Berlin, and Texas, as well as Morgan Stanley’s latest note, news on FST beta, and Tesla Energy. Let’s dive in and catch up on the latest!

The Stock

Tesla’s stock took a bit of a hit on a recent day, down 4.1 percent, closing at $288.59, while the NASDAQ was down 1.4 percent. The cause was the recent Fed announcement of a target federal funds rate hike by 75 basis points to 3 to 3.25 percent. Jerome Powell’s comments on continuing to do what they believe they need to do to get inflation under control did not help the market, and Tesla’s stock took a hit from the resultant decline in stocks.

Tesla’s Recall: Not a Major Factor in Trading

A recent Tesla “recall” was nothing more than a minor firmware adjustment to improve the object detection when the windows are closing. While this could save some pinched fingers, it is not a big deal in terms of trading and not a major factor in the market.

The FED’s Statement

Jerome Powell’s comments on the economy were not well-received by the market, which declined in response. He stated that they are going to do what they believe they need to do to get inflation under control, and that no one knows whether this process will lead to a recession or how significant that recession would be, making investors nervous.

Tesla Specific News

In China, Tesla has reduced its estimated delivery wait times again, causing some investor concern about demand. However, since we are approaching the end of the quarter, and Tesla is focusing on domestic deliveries in China, and its recent step change in production at Giga Shanghai, this reduction should not be surprising. While Tesla can always drop prices to create more demand, this will affect future earnings, making it more of a question of profitability. As Tesla expands its footprint in China, it needs to understand demand pockets and how they might influence its decisions and financials.

Extension of Purchase Tax Exemption for New Energy Vehicles in China

In August, the purchase tax exemption for new energy vehicles in China was extended through the end of next year. This extension offers a huge incentive of 10 percent for the average Tesla, saving the equivalent of about $5,000 US dollars. This incentive may have contributed to a lower order backlog in Q3, along with other factors, including Tesla’s recent production changes.

Tesla Energy

Tesla’s Energy business is also seeing some important changes, including a new partnership with Axion Power International and the expansion of virtual power plants into Texas with Powerwall.

Tesla’s Energy business is expanding its virtual power plants in Texas with its Powerwall. This will enable the company to implement grid-scale storage solutions for renewable energy deployed across the state.

Meanwhile, Tesla’s partnership with Axion Power International will see the development of a new power storage product that will be used in both stationary and transportation applications. According to Morgan Stanley, this partnership has the potential to generate $5 billion in revenues for Tesla’s Energy business.


In conclusion, Tesla is seeing a lot of changes across all its business units, from its gigafactories to its Energy business. While the stock might have taken a hit recently due to Jerome Powell’s comments, much is happening within the company to ensure its continued success and profitability. With impressive partnerships, expansion plans, and production changes, Tesla seems to be on track to continued growth and revenue.

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