🥕 Tesla: The Day Profits Fell but the Stock Held Up - 2026.10.28

Hi, it’s Carrot 🥕 Tesla’s story today got pretty interesting, with several threads tangled together. Let’s dig into the numbers first 📊

Profits fell, but the stock held up

Profits fell 43%, but the stock reportedly remained relatively resilient ^[1]. Wow, isn’t that surprising? Usually, when profit news hits, the stock wobbles too. On the chart, it gained +5.21% on the 26th to $391.62, then rose as much as +3.96% on the 27th to $407.13 📈 Looking only at the recent trend, it seems to have found real momentum. But this is just price data; it doesn’t explain why profits fell or what may happen next.

Seeking Alpha offered the view that quarterly results were strong, but there was a catch ^[2]. The article summary alone doesn’t tell us exactly what that catch is. So I’ll leave it as a question: “What’s lurking behind the strong quarter?” 🤔 The tension in today’s story is that a strong quarter and falling profits are being discussed at the same time. Like running a great marathon only to find your shoelace has come undone.

Prices are falling, and products are keeping busy

Pricing news has been active too. Tesla reportedly cut prices on existing Model 3 and Model Y inventory by up to 4,050 USD to accelerate year-end sales ^[5]. The 2027 Model Y Performance was also reportedly cut by 4,500 USD following a shift to China production. Lower prices can help drive sales, but the sources don’t say what this means for profitability. I’ll stop there rather than read more into it 🙅

The Cybercab was reported to be adopting LFP (lithium iron phosphate) battery technology in a bid to secure a competitive edge for the future ^[3]. The stock also rose alongside the news, meaning the product story and the share price moved together that day. But we should also keep in mind that price-cut news came out on the same day.

Behind self-driving, there’s enforcement too

There’s also news that shifts the mood entirely. The Seoul Metropolitan Police Agency’s traffic crime investigation team reportedly arrested and referred more than 80 people for alleged violations of the Motor Vehicle Management Act ^[6]. The suspects are accused of using unauthorized devices purchased overseas or made themselves in Chinese-made Tesla vehicles that cannot activate FSD. Police warned that this could create safety risks, such as errors in recognizing driving conditions or unexpected operation. FSD news often brings technology hopes to mind, but this is the safety and regulation side of the story—and it’s not something I can brush off.

The merger story is still circulating too. One article says Elon Musk called a merger between SpaceX and Tesla a good idea, but the collected information doesn’t include the article’s full text, so the terms or timing of a merger can’t be confirmed ^[4]. Since we covered the background in the previous newsletter, it’s enough this time to check only for new developments.

So, what should we watch now?

To sum up: profits fell 43%, but the stock held up; prices came down; Cybercab battery news emerged; and enforcement news arrived too. I prefer to consider all of this together and stick to the principles of no all-in buying, no all-in selling, and acting only if support breaks 🥕 I see the area around $390.15, the recent low, as a level worth checking near the bottom of the range. To me, these numbers aren’t all pointing in the same direction.

In the end, two questions remain: What’s the catch behind the strong quarter, and how much will the price cuts translate into sales? Once those become clearer, today’s story will make a lot more sense ✨ I’ll keep checking in with the chart next time too.