Tesla shares power market with 21% surge

Good morning. Here's what happened overnight and what you need to know today.

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1.

Tesla’s bang: Tesla's shares surged over 21% after the company posted strong third quarter earnings and forecast up to 30% growth in vehicle sales for 2025. The EV maker said its Cybertruck reached profitability for the first time, while lower costs, regulatory credit sales and a growing energy business contributed to Tesla’s strongest earnings in over a year. Adjusted profit of 72 US cents per share and its profit margin of 19.8% exceeded expectations, with revenue reaching USD25.18 billion. CEO Elon Musk told investors at the earnings call the rollout of more affordable models would drive “something like 20% to 30% growth next year, is my best guess”. Analysts pointed out that investors had set a low bar for this quarter after four consecutive bottom-line misses and a Robotaxi Day that had left investors with more questions than answers. (Capital Brief)(Bloomberg)

2.

AI alliance: Nvidia CEO Jensen Huang announced a partnership with Mukesh Ambani, Asia’s richest man, to expand AI infrastructure in India, Bloomberg reported. Speaking at Nvidia’s AI summit in Mumbai, Huang said Ambani's Reliance Industries will build a major data centre in Gujarat using Nvidia's advanced Blackwell. The project is part of Nvidia’s broader strategy to grow its presence in India, which has become a key market for global tech companies like Nvidia, Microsoft and Meta. The chip maker has a long-standing presence in India, with 4,000 engineers across multiple cities. It is also collaborating with Indian conglomerates Infosys, Tata Consultancy Services and Tech Mahindra to help build AI models and improve customer service systems, and will work with Indian healthcare companies on productivity improvements. “India produced and exported software,” Huang said. “In the future, India will export AI.” (Bloomberg)

3.

White exit: Richard White stepped down as CEO of WiseTech Global following escalating scandals surrounding his personal life, including allegations of inappropriate conduct. White will transition to a 10-year consulting role, retaining his $1 million salary. His resignation followed a series of media reports accusing him of inappropriate conduct, such as buying properties for women with whom he had relationships. WiseTech’s board initially deemed White’s legal stoush with Linda Rogan, with whom he had an affair, a 'personal' matter, but mounting public scrutiny made that position untenable. CFO Andrew Cartledge will serve as interim CEO while WiseTech conducts a global search for a permanent CEO and deals with the fallout from the scandal, which has wiped $8 billion from its market value. (Capital Brief)

4.

VC catalyst: Silicon Valley’s General Catalyst raised USD8 billion ($12.07 billion), the largest sum raised by a US venture capital firm in over two years, as part of a global expansion, the FT reported. The 25-year-old firm, led by Hemant Taneja, will allocate USD4.5 billion to its core VC funds, USD1.5 billion into creating new start-ups and the remaining USD2 billion towards deepening its involvement in strategically important businesses in regulated sectors like healthcare, energy and defence. Taneja wants to reshape venture capital, citing limitations on scaling traditional VC models and advocating a more hands-on approach. General Catalyst acquired a hospital system in Ohio this year as part of its plans to embed technology into healthcare. The firm is planning its first investment in Saudi Arabia after merging with smaller firms in Europe and India. (FT)

5.

Record fees: KKR posted a 58% rise in third quarter adjusted net income to USD1.2 billion ($1.80 billion) surpassing Wall Street expectations. The surge was fuelled by record fee-related income of USD1 billion, up 79%, helped by a USD24 billion capital raise and strong performance from its capital markets and insurance units. The firm’s assets under management climbed 18% to USD624 billion, while operating earnings hit a record USD1.3 billion. KKR’s private equity portfolio rose 5%, infrastructure funds rose 6% and opportunistic real estate funds increased 2%. Meanwhile, KKR agreed to buy a 25% stake in Eni’s biofuel arm Enilive for €2.94 billion. “Activity levels across the firm remain high as we experience a continued acceleration across our key operating metrics and financial results,” said co-chief executive officers Joseph Bae and Scott Nuttall in a statement. (Capital Brief)

6.

Machinists’ standoff: Boeing’s largest machinist union rejected a revised contract proposal, extending their six-week strike and intensifying the aerospace company’s financial struggles. With 64% of union members voting against the deal, Boeing's factories for its key jet models will remain idled, costing the company around USD1 billion a month, according to analysts quoted by The Wall Street Journal. The rejected contract included a 35% wage increase over four years, a USD7,000 ratification bonus, and increased 401(k) contributions, but failed to restore pensions—a key union demand. The strike is stopping production of key models like the 737 Max. On the same day the offer was rejected, Boeing reported a USD6.2 billion loss for the third quarter of 2024. Analysts warned of a possible credit downgrade to junk status if the strike drags on. (Capital Brief)(The Wall Street Journal)

7.

Deal boost: Barclays reported a better than expected 23% rise in third-quarter profits, reaching £1.6 billion ($3.13 billion) supported by a recovery in dealmaking and higher interest rates. The bank’s investment banking division saw a 6% increase in income, driven by equities trading and debt capital market activities. Investment banking fees surged by 58%, benefiting from a revival in mergers and acquisitions (M&A) after a two-year lull. Barclays also raised its full-year net interest income forecast to over £11 billion, reflecting the continued benefit of high interest rates. CEO CS Venkatakrishnan’s ongoing three-year plan is yielding results, with cost cuts and stronger performance across divisions, including its UK retail bank. Barclays’ shares have gained 55% this year, and the stock closed 4.16% on Thursday (Friday morning AEDT). (Barclays)(Capital Brief)

8.

Tesla driver: Tesla led a tech rally on Thursday, surging over 21% after delivering a bullish outlook for EV sales growth in 2025. The Nasdaq gained while the Dow and slipped slightly due to weaker results from IBM and Honeywell, and ongoing pressure from high Treasury yields. UPS shares rose 5% on profit growth, while Boeing shares fell as workers rejected a new contract, extending a strike. European stocks gained, with Barclays reporting strong earnings and Hermès benefiting from high-end consumer demand. US Treasury yields eased slightly to hover around 4.2%, while Brent crude dipped 1%. Whirlpool jumped almost 15% after it projected continuing improvement in profits, while Unilever and Danone beat 3Q quarter sales expectations. Meanwhile, US jobless claims were lower than expected, amid lingering doubts about what was once seen as a certain November Federal Reserve rate cut, as the strength of the US economy challenge expectations. (WSJ)(Bloomberg)(Reuters)