Tesla beat revenue ($28.04 billion vs $27.8 billion) and EPS (48 cents vs 43 cents), with $1.53 billion free cash flow versus a $4.92 billion shortfall and better margins, improving profitability; its capex discipline goes unappreciated by a market worried slower data-center and AI spending matters long run.

Okay Kevin, before we get into companies like Meta and Tesla, let's talk about the big picture.

Okay, let's move on to Tesla. Those stocks were under pressure when I last reviewed them after their quarterly results, even though they beat expectations. Yes, we see the stocks moving slightly downwards here.

Revenues reached $28.04 billion. Market expectations were $27.8 billion, and adjusted earnings per share were 48 cents. The market expectation was 43 cents. Free cash flow reached $1.53 billion.

That was a very significant achievement, in fact. The market had been expecting free cash flow to be negative by $4.92 billion. We have also seen a positive adjustment with regard to the gross profit margin for the automotive sector.

Therefore, this is a very positive thing to look at when considering the company. Now, you can see the stocks moving slightly downwards. This is most likely due to capital expenditure guidelines.

They actually reviewed it downwards. So, they're not going to spend much, and I think the market is concerned that they're trying to slow down the pace of spending on data centers and artificial intelligence, which could actually affect the company in the long run.

But, overall, they were able to exceed expectations in revenue and profits. You are seeing an improvement with regard to the company's profitability fundamentals. It's just about capital spending guidelines.

What's really interesting, Diane, is that we've seen companies get hurt because they continued to increase their capital spending. Tesla is somewhat reversing this trend and adhering to the limits it set during the past two quarters, and the market doesn't seem to appreciate that, at least this morning.