Breakfast News: Tesla Loses Ground Abroad

Motley Fool
06 Feb

Breakfast News: Tesla Loses Ground Abroad

February 6, 2025

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Source: Image created by JesterAI.

1. Tesla Sales Fall in Europe's 3 Biggest EV Markets

Tesla (TSLA -3.58%) saw just 1,277 new cars registered in Germany in January, down 59% month over month and the lowest since July 2021 despite the country's electric vehicle market growing by 54% for the month. January sales in France slumped 63%, while U.K. sales slipped 12% to 1,458 cars, beaten by 1,614 sold by Chinese rival BYD.

  • "If you value Tesla as just an auto company ... that's just the wrong framework": While the stock has seen remarkable gains thanks to its EV business – beating the S&P 500 by 18,040% since its first Rule Breakers recommendation in 2011 – investing is about what's ahead. Last year's quotes from CEO Elon Musk made it clear Tesla's future is all about "solving autonomy."
  • "Significant investments in infrastructure": After raising AI spend by more than 400% in 2024, Tesla aims to launch its Robotaxi business in parts of the U.S. in 2025, though the company says growth will depend on advances in autonomy.

2. Next Up: Amazon Earnings

Amazon (AMZN -2.43%) will post fourth-quarter results after the closing bell. Management's guidance suggests $181.5 billion to $188.5 billion revenue. As the world's biggest cloud provider, much focus will be on Amazon Web Services (AWS) results.

  • More Mag 7 AI spending growth?: Capital expenditure for 2024 is expected to hit $75 billion, and investors will be keen to hear of planned 2025 rises following similar announcements from Magnificent 7 peers in recent days.
  • Prime Video advertising, and more: The company's Prime Big Deal Days event in October and ad revenue from the holiday shopping season should be significant contributors. Plus we'll want news of the tie-up with Anthropic, as well as new AI developments.

3. Qualcomm Falls Despite Earnings Beat

Wireless technology giant Qualcomm (QCOM 1.63%) posted earnings for the first quarter of 2025 after the market closed yesterday. Revenue of $11.67 billion beat expectations by 7%, with $3.41 adjusted EPS 15% ahead of analyst estimations. Revenue from Qualcomm CDMA Technologies (QCT) climbed 20% to $10.08 billion.

  • Negative initial reaction: The stock fell around 5% in pre-market trading this morning, after Qualcomm said the expiry of an agreement with Huawei will mean no growth in its 5G patent licensing business this year.
  • The importance of the Internet of Things: Looking ahead, investors should watch for growth in the automotive and IoT businesses, as management has a target of $22 billion in non-handset revenue by fiscal 2029.

4. What to Watch on Thursday Morning

Recommended twice in Stock Advisor in 2023 (both beating the market), gaming platform provider Roblox (RBLX 2.28%) will post Q4 earnings before this morning's opening bell.

  • Record cash generation: A 120% rise in operating cash flow in the third quarter coupled with free cash flow soaring 266% have helped push Roblox up 92% in the past 12 months.
  • Expect news of AI development in creation tools, safety systems, and developer productivity: This is the first quarter since the company launched its paid access experiences in December 2024, where developers get a 70% revenue share on premium-priced content.

5. Foolish Fun

Which of the following Foolish stocks, all down 60%+ since being recommended, has the best chance of recovering and beating the market over the next 5 years: Celsius (CELH -2.14%), Enphase Energy (ENPH -1.49%), Roku (ROKU 1.86%), or Under Armour (UA)? Debate with friends and family, or become a member to hear what your fellow Fools are saying.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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