csx, which i'll be watching. >> guidance going to be really important. of course, we're heading even more into the thick of earnings season with more and more tech names, for example, coming up. >> all right. that's going to do it for us at "overtime." >> yeah, i mean, busy hour. "fast money" starts right now. live from the nasdaq market site in the heart of new york city's times square, this is "fast money." here's what's on tap tonight. netflix and thrill. the streaming giant popping on better than expected earnings, adding more subscribers than expected. raising prices in the u.s., uk, and france. and boasting about the ad-supported tier. we'll go inside the numbers coming up. plus, brokerage blues. shares of morgan stanley clocked, down 7% today. the staggering stat from their cfo about how much cash their clients are hoarding. and later, closing in. the ten-year getting ever so close to hitting 5%. the move rattling stocks and the mortgage market. so, are rates close to peaking or is this the start of a major move higher?

i'm melissa lee, coming to you live from studio b at the nasdaq. on the desk tonight -- tim seymour, karen finerman, steve grasso, and guy adami. we begin tonight with netflix, shares soaring, up 12% afterhours. netflix getting a boost from subscriber growth and a new ad-tier subscription. cnbc's julia boorstin here to take us inside the numbers. julia? >> melissa, that 12% jump of netflix shares, that all comes down to the company adding 8.76 million subscribers. a huge subscriber beat. three and a quarter million more subscribers more than anticipated. this in large part thanks to a successful crackdown on password sharing. the company says, quote, the cancel reaction continues to be low, exceeding our expectations. and borrower households converting to full-paying memberships are demonstrating healthy retention. the company also saying that the adoption of its ad plan continues to grow, 30% of

signups, up 70% quarter over quarter. to push more subscribers to its ad plan, netflix is keeping the price of its ad-supported and standard plan the same, but they just announced they are hiking the price of the basic plan by $2 to $12 a month, and the price of the premium plan by $3 to $23 a month. the company saying it has a, quote, exceptionally strong fall and winter schedule coming up. they also say they're working to what they call fuel the fandom with new consumer products and experiences, they talked about developing what they're calling netflix house, a physical flagship destination to offer food and retail tied to their shows. we'll see if we hear more about that in the call, which starts in an hour. melissa? >> julia, thank you. holding onto that 12% gain here in the afterhours session. lots to like. they are raising their '23 cash flow estimate by a billion and a half dollars. that's a huge raise here, karen. >> it's a huge raise. there was tons to like,

obviously, that subscriber number was huge. even the u.s., which you would think would be more saturated and the most profitable market, that had some nice growth. europe, middle east, africa, very big growth there. the cash flow was very, very good. it's interesting. they are just really pulling away from the streaming pack in terms of their -- the momentum is still there, in terms of subscribers, but also, the business model is still there, right? the generation of free cash flow. that's sort of, they're the only one. there's a lot to like. i don't know what's the right price, exactly, they've not been great historically at guidance. the one thing i found hilarious about this entire release was the revenue exactly hit the street. just the revenue. nothing else. i don't know how that works. >> guidance is all over the map. >> and the ads beat dramatically. >> yes, that's a very good point. thank you for bringing that up. stock a lot, compthey had the executive change there.

that was a nice surprise. and of course when you raise prices, and your costs don't go up, that's a giant benefit for margin. >> yeah. and geszuess what? there's more of those subs coming coming. if you think about the sharing accounts, there's a sequencing for getting those folks online. based upon the success they've had, i think this is what analysts are going to be able to put into these numbers. karen, you hit the -- it's all about free cash flow. when you consider that paramount, disney, warner brothers, anybody who is in this business will combine/lose $8 billion or this that negative free cash flow and these guys went from 5 billion guide to 6.5 billion guide. maybe the writers' strike goes on, maybe it doesn't significantly longer, but that seems to favor netflix, and at a time when they've said they're probably going to be around -- they've been $17 billion or so in terms of spend on content, they could spend more. and, you know, i mean, things like beckham, guy, you watched

that? it's awesome. >> trending. >> it's hot. it's hot. >> this is a stock that came from $485, so, i think the bar was set pretty low for them to step over it. i would have bet against this. i think this is pretty impressive. having said that, lower higher since that 485 top. they had to beat 387 on a price. they did. afterhours. so slightly higher higher low, if you will, yeah, i said that right. slightly higher low makes me a little more bullish for the setup. if you look at the 15% retracement, that's 414, a lot of wind there. >> steve makes the point, back where we were, i believe, on october 10th in terms of price. a lot of work. here we are back there. and the last couple days haven't been particularly good. probably right. a lot of expectations were low, they beat street, that stuck out to me, as well. you beat ads by $3 million, your revenue is in line, something doesn't mesh, maybe rich

greenfield can figure that out for us. everything else is pretty good. so, maybe this recent low on decent volume will be in for a period of time. >> does this auger well for the other streamers or just prove that netflix is beating everybody's pants off? >> i think the latter. pants off? that's the option? >> pants off. not pants on. >> new series. >> color me some of the people -- i was hoping to be able to buy this lower. i thought it was going to go lower on this print, so -- they've also announced a 10 billion potential repurchase. so, that's something that i think is not necessarily -- you know, something they need to go ahead and do with their capital, but it's something that's really impressive and shows where the free cash flow is. i don't think we're hearing this kind of progress in other businesses, and the other dynamic here is, every one of those other companies that i mentioned before has a legacy cable business that's dying. and there's a lot of money being spent to figure out what to do with that, or at least try to salvage the best part of those assets. >> pants off camp, guy? >> pardon me?

oh, in terms of -- sorry, i was -- yeah, you had me thinking -- yes, i think it's netflix's world, everybody else l lives in it. let's see, to the extent there's a conference call, guidance, hows it reacts, but at least the knee-jerk reaction is pretty good. >> the two tailwinds were password sharing, the crackdown there, so, we see that has more legs to go on that side of it. and the writers' strike. for me, that was a tailwind for netflix. we have to be closer to the end on both of those than the beginning for obvious reasons, so, i think that's why it shocked a lot of people, but i think those tailwinds are probably dissipating. >> for more on netflix, it's bring in rich greenfield. rich, let's first, you know, if you can walk us through the technical aspect of the quarter, that is the big pop in ad revenues, in line in overall revenue. can you sort of walk us through that math?

>> look, i think the reality is, netflix is focused on growing average revenue per member. they call it arm, it's basically arpu in every other company. it doesn't matter where the revenue comes from. they're offering an ad tier, 30% are taking it. disney, they said 40 % of their subscribers are taking the ad tier. i mean, remember, melissa, most people, like, most people who are the moochers, the password shares are shifting ver, most of them are still choosing ad free. people are used to netflix being ad free. i think people like ad-free content. you'll see more and more advertising base subscribers, it will take time, but i think the real message here is, investors shouldn't care where the revenue comes from. advertising or subscription. however it works out. the key is, netflix is now growing revenue double digit, margins are going back to 20%. generating $6.5 billion for free cash flow, while everybody else

is literally running for cover. under pressure from activists, trying to stay alive, like cutting back on programming spend, trying to raise price dramatically to improve profitability, nobody else is investing. it really feels like netflix this quarter is running away from the pack. >> so, he's in the pants off camp. >> yeah. >> so, it's karen, thanks for being on today. obviously, you've been very bullish, you had a big number, a big target, rather, going into this print. how do you get there? how do you think about how to value this business? >> i think the reality is, you're seeing it, right? they are dominating. they are almost at 250 million users globally. and they're just getting started. i mean, they still only have 40-plus millionish subscribers in asia. that number is going to be hundreds of millions over time. so, there's still a tremendous of long-term runway. but i think the big news today, i mean, i know everyone's focused on earnings, but that

really is the smaller story, in my mind. the big news is the chief creative officer of pixar is now working long-term with netflix. moving animated films over from apple tv plus to netflix exclusively for years and years to come. that is, you know, animation is the one category netflix has not done a good job in. and i think they would admit it. this is a huge, bold move. there's two animation companies, right? there's disney and there's universal. universal certainly has taken that crown over the last two years. i think it would have been unimaginable to put netflix in the same category as disney and universal, lum nation, from an animation standpoint, and i think today, you can do that, karen. >> so, rich, if you -- if you look at netflix, they're the pure play, they're the leader of the pack, they're running away from the herd, as you just said.

who is the first in that herd that's chasing them? >> i mean, look, disney's by far the best positioned to be number two. i think the real question is, what exactly is disney trying to create? you know, obviously bob iger spoke on cnbc in that sort of epic david faber interview from sun valley several months ago, you know, talking about sort of how they're going to strategically shift, you know, are they keeping espn and abc? they are obviously buying hulu soon for comcast, probably for a much bigger price than the $9 billion disney would like. this is a pretty important strategic asset to disney, it's hard to imagine it's not a $13 billion, $14 billion number to comcast. so, what do they do with hulu, how do they fold it into disney+, what happens to espn? whether or not disney focuses on what they're good at, which is family entertainment, or they try to be much, much broader and

try to take on netflix globally, i think that's still the big unanswered question facing iger and the -- disney, over this next 12 to 18 months, that investors are really trying to figure out. and look, it's why disney's stock is at a, what, 12 or 13-year low, i think people are really struggling to figure out, what does disney look like in one, two, three years? what's the earnings power where it is today? feels like there's a lot of pressure. someone mentioned before i came on, sort of the challenges facing the linear tv business, you know, cable and broadcast networks. that pressure isn't going away, it's going to intensify over the next couple of years, and so, disney would be that strongest challenger, but i also think you can't count out wbd. you certainly have a great brant in that content. the question is, do they have the balance sheet and reducing leverage, can they get to the point where they can actually build and invest? >> rich, always great to get your take, thank you. >> thank you.

>> rich greenfield. so, disney is second, tim. how are you feeling about it these days? ah, i think the valuation of disney makes sense. i think there's also extreme cost control focus, and that may not be what you want as they have no choice. i think disney's reliance and -- has to plan around significant transactions, though, and that's a big deal. so, the question is, does netflix want to be on offense here? because it almost seems like they could be. and, you know, animation is at least staying in the same lane. how about gaming? how about other places where at one point we thought maybe netflix would be? is this their time to stay focused and build a pile of cash? because that's what it feels like they're doing. i think it would be interesting to see them get into some of the other growth areas, too. >> would you want to see netflix enter gaming? if netflix said later on at 6:00, that it was getting into gaming, do you think the stock goes higher? >> higher. they've -- remember, yeears ago

they talked about the obstacles were sleep and gaming. hard to combat sleep, you can combat gaming. so, the market would give them more than a pass on that, i think they would champion that. >> yeah, i agree with that. you're searching for hours during the day to occupy eyeballs, but what i found interesting is the comcast angle of it. we talked about hulu, and if hulu is worth greater than was suspected, then that's a -- then that's definitely a bullish call on comcast. comcast is thrown in that would you rather rather -- no? >> i didn't ask. >> early? >> i didn't mention that. >> 5:14. >> first day back. >> sorry, guys. >> what the heck? >> what the heck. >> let's get to tesla. the stock is hovering around the flat line, despite an earnings miss and a big drop in margins. phil lebeau has the details. phil? >> well, it's a little bit higher after hours, despite missing on the top and bottom line, that's because the gross auto margins appear to have come in slightly better than what the street was expecting.

let's do the numbers and then the numbers within the numbers that people are really paying attention to. earning 66 cents a share in the third quarter. tesla was shy of expectations of 23 cents a share. revenue light of expectations, but not by a lot. $23.35 billion versus $24 billion. gross author margins expected, came in by most calculations at 17.9%. and then you have adjusted ebit margin, 16%. that's down from 23% a year ago. 7.6% operating margin. it was 17% a year ago. and operating cash flow, $3.34 billion. then there's the question of deliveries. we got some news within the last couple of minutes. when they put out the release, they reaffirmed their guidance of delivering 1.8 million vehicles this year is which means they need to have a fairly strong fourth quarter, a record fourth quarter, we should say, record quarter, for deliveries. and then the cyber truck announcement. the company said in the release that they are on schedule for deliveries this year, and a few

minutes ago, elon musk tweeted out they will do a delivery event in texas on november 30th. so, if you look at shares of tesla, keep in mind, the real news is going to come here in a few minutes, melissa. that's when the conference call begins. and a lot of questions elon musk will be facing regarding pricing pressure, particularly in china and in europe. now, i should point out, during the last conference call, remember, they do these -- the questions from investors, hand-picked questions, if you will, and the pricing questions didn't really come up until well into the call. let's see how quickly they address it this time around, and what kind of news we get and again, that starts at 5:30. >> yeah. phil, thank you. keep us posted. phil lebeau. it is a peculiar move in terms of the afterhours, not really a big move as we normally see from tesla. what did you make of this quarter? >> it's amazing how low vol it is. and if you look at the chart, also where tesla is in the aftermarkets, i realize it's aftermarkets, this uptrend from

january 3rd is very much in tact with multiple tests along the way. the fact they're holding deliveries in line is the most important part. the price cuts, i believe, are not as significant as they should be. this is a company also that's going to have $850 million in free cash flow in that quarter. a company that'sgenerating free cash in a business that, again, this sounds like netflix with other streamers, right? the other ev guys can't make money here. i'm not a champion of this stock, because i think the valuation at this point is not something i get behind, but it's hard to argue with -- they're consistent here. they're talking about deliveries over worrying about pricing and margin, because they could sweat people if they want to. >> that's right. >> interesting. i'm looking at total gross margin x regulatory credits came in. number might be wrong, but 16.3%, the street was at 17.6%. didn't know if that's correct. i'm sure gene will know if and when he's on, but it's a margin story and it's a free cash flow story. free cash flow was disappointing. margins seemingly so, as well, but if that margin number is

wrong, maybe the market is giving them a pass. >> the x credit always causes a ripple in this whole analysis. but if you think of -- whatever the margin level is, if you think that most of the price cuts are in now, that there aren't that many more price cuts to come, then maybe margins have hit a trough. >> that's the bull case. >> and the cost of each vehicle has decreased, you know, in terms of the commodities, the batteries, et cetera, that's all come down. >> also, if you are making more product through the, you know, you leverage a lot of overhead. even if costs move up a little bit. so, i know that wasn't this quarter, but we expect them to make a lot more cars, right? >> do we care about cyber truck? >> yeah. i think you do. because margins are going to be bigger. they're coming from a very low para bar, but to your point, you're sacrificing margins for bigger share. now with the uaw, that headwind has taken ford and gm out of the ev business. it's tesla. >> it hasn't taken them out of

the business. >> they lose money hand over fist, they are bleeding. margins are terrible. it's tesla's game to lose. >> but the strike didn't do that. i mean -- your point is well-taken that they're distracted and businesses aren't making money, but i think they're going to be real competitors. the whole argument against tesla, for me, is valuation and competition. i realize they're far ahead, but you know, i'm not ready to give up on detroit and ev. >> one thing in the tesla release i thought was interesting was the deposits, which the street was looking for 1.03, came in at 894 so i'm wondering, why is that? is it fewer deposits, you know, smaller deposit? how much is that translated historically into sales? how good of a read is that? i don't know. >> we'll have much more on tesla's quarter in just a few minutes. the conference call will get under way in ten minutes time. and we'll have gene munster on to give us his analysis. let's get to the unstoppable ten-year. yeemds today closing in on 5%, topping out at 4.93%.

that again is the highest level since 2006. today's spike pushing rates on a 30-year fixed mortgage to 8%. home buyers have not seen that number since 2000. and you imagine all this taking a toll on the builders. xhb down 2.5%. and everything surrounding the housing trade, rh, wayfair, sherwin-williams, masco, they all got hit hard, too. gold a bright spot in the market, dominated by losses today. it is now up by nearly 5.5% this month. just $30 away from $2,000 an ounce. guy? >> think it's just getting startled. i'll shelve that for a second. the bond market is absolutely the story. rick santelli on here a couple weeks ago, said a close above 4.75% would set the path to 5%. we saw a pull-back after the middle east situation a couple weekends ago to 4.55%, and here we are at 4.91% or so. and this is not good. japanese trying to defend their bond market, the currency, selling treasuries, the fed's

not buying. who is buying our debt? somebody is, but at a much higher yield. >> gold's going a lot higher. gold's traded great through a difficult period. i go back to the mortgage market and talk about that mortgage banking association index, mortgage applications that are in, is now 15% all-time low after the great financial crisis. you tell me what's going on in the housing market. i don't care about lack of supply, i'm telling you, prices come down when you can no longer afford one half of a house, because it was all about monthly payments. it was all about really what you could afford to live on. and i just -- you know, these numbers speak for themselves. i think what's going on in the bond market is, you know, somewhere around 5%, we're going to run into a little resistance, it's not going higher forever. guy's arguments about central banks are dead on. and at some point, the economy is not going to look like 6% growth in the third quarter. that's not helping this. but this was a big day and equities gave ground by the end of the day. >> so, when you look at treasuries and when you look at rates, you have to -- the fed has to actually say they're

going to stop and they're not saying that. they have -- they have a vested interest in saying they're not going to stop. they have to continue to fight inflation. but when you see the fed stop and you know that cut is coming, it's sooner rather than later. you're going to see rates crater from here. and that will put a boost into the equity market. so, i'm not -- >> but higher for longer, you're say, is no higher for longer? you say sooner than later. >> from august 30th, we've seen treasuries increase by 84 bips. so you what is the fed doing at this point? the market's done it for them. >> market's done a lot. the question is, higher for longer, as we were saying yesterday, is a gear, is a choice for the fed, and it is something that i think rather than cutting is at least everything they've told us. you may be right. >> i just don't think -- we all know that the fed only controls the short end, right? the fed doesn't control the long end, so, the issuance is a problem for me. >> huge. >> that's where i have the biggest problem here. but i do think that the markets

overcorrect, they overshoot, and i think rates are in the process of overshooting, with everything that's going on in this volatile world. >> let me counter with one thing. the higher the rates, the higher the issuance will continue to go to fund the higher rates. vicious cycle. >> but people will start to buy that ten-year once we start to cut, people are going to start to buy the ten-year and it's inverse and correlated, obviously. coming up, major profit problems for morgan stanley. investment banking revenue plummets. and the action in two names catching our traders' eyes. elevance health and spirit aerosystems. n'go anywhere. much for "fast" in two.

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welcome back. the white house saying that the president will deliver an address to the nation tomorrow night at 8:00 p.m. eastern from the oval office. he'll discuss america's response to the hamas terror attacks against israel and the ongoing war in ukraine. again, that's tomorrow, 8:00 p.m. eastern time. moving on, big bank blues. shares of morgan stanley deep in the red today. the bank's all-important wealth

management division coming in roughly $200 million below estimates. leslie picker spoke with the cfo who said client portfolios are sitting on 23% cash -- 23% cash and cash equivalents. another big disappointment, investment banking revenues, which fell below the $1 billion market for the first time in several years. you guys were really jazzed about morgan stanley on the call today. >> it's telling you something about both where asset allocation is and where we probably are, and says something about the equity market, but it certainly says something about where, at one point, the -- i would say the mismatch between where banks were funding and what they had to pay depositors is so different. what we've seen from the money center banks is that net interest income was a lot better than expected. i just think that the dynamics around balance sheet around some of these places is the most important thing, but the wealth management revenues, look, i still get back to the fact that morgan stanley has de-risked

their business massively. at some point, the valuation, which trades at a premium to peers, is something that gets interesting. >> karen? >> that's exactly what their strategy is, right? a different kind of business model, a higher multiple that goes along with it. so, they have the lumpier parts of their business, those were lumpy, some were good, some were bad. where they get the higher multiple is the wealth management business. for that to be a miss, when you have a higher multiple and you miss, you get that higher multiple ding on your pe. it was a little more of a ding than i thought maybe it should be, but i understand dire directionally, for sure. >> investment banking disappointing, wealth management disappointing. this is that three-pronged animal that was great for them, but when two of the three start to do poorly this is what happens. and this move today is on back of a move over the last four, five months that the stock was just trending lower. which is disappointing. 75 bucks, which is where we're trading, line in the sand. go back to june of last year,

and this is where it bounced off of. so, i think it needs to hold here, but if the rest of the banks start following in suit, morgan stanley won't be spared. >> thought it was interesting that the ceo said that when the fed starts cutting, the calendar is going to quote unquote explode in terms of deals. >> yeah, and we've had a couple of deals recently, but not near where they need to have this deal level. when you look at the financials, two different animals. morgan stanleyjpmorgan. jpmorgan is up eight and change year to date, so, people are riding in jpmorgan until the geopolitical world clears, until the economic world clears. you don't have to buy a financial, but if you want to buy a financial, you buy jpmorgan. coming up, elevance out with results, while spirit aerosystems gets a helping hand. and keeping an eye on tesla shares. the company conference call just getting under way in a couple minutes. one minute, to be exact. tesla shares are up by a

percent. we'll bring you the headlines as they come in. you're watching "fast money." back right after this.

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textures and styles. it's possible. with james hardie™. welcome back. stocks selling off as yields climb. the ten-year notching another 16-year high in terms of yields. the do falling 300%. the s&p dropping 1.3% and the nasdaq leading the losses down more than a percent and a half. elevance health jumping after reporting results this morning, but losing steam throughout the day. the company beating on the top and bottom line and raising its 2023 profit forecast, and spirit aerosystems surging 23% after coming to a new price agreement with boeing. the deal helping to shore up the company's production system. spirit now projecting a near-term revenue boost, thanks

to agreement. it comes after some quality issues involving spirit delayed boeing deliveries. that's a 23% gain. guy? >> go back to where the stock troughed ed at. management change, maybe long overdue. a lot of people will say that. you come to an accord with boeing, and then you say, wait a second. there's some runway, no pun intended, for this stock. i was wrong for a long time, but this might have been the turn. we might go back and look in october of 2023, we saw a trough in spr. i don't know about boeing, necessarily, but spirit aerosystems for sure. >> all right, coming up, the tesla conference call is under way officially. we'll hit all the headlines out of that call in just moments. "fast money" friend gene munster will join us for his take and what he wants to hear. plus, a rebound for abbott labs. fighting back against wall street's obsession with obesity drugs. why they're calling it an overreaction, and how they're lightning the load for investors. tas enfa eilwh "st

money" returns. from chrome to duckduckgo.

duckduckgo is a browser you download to your mobile and desktop devices. unlike chrome, the duckduckgo browser has privacy built-in. it comes with a private alternative to google search, which doesn■t spy on your searches, and it blocks cookies and creepy ads. and there's no catch. it's free. we make money from ads, but they don't follow you around. join the millions of people taking back their privacy by downloading duckduckgo on mobile and desktop today. welcome back. more afterhours moves to show you. las vegas sands higher after reporting in-line earnings and a revenue beat. we'll get more in a few minutes.

sl green realty lower after cutting earnings guidance. shares of lam research lower despite a top and bottom line beat. turning now to tesla. shares slightly in the green after reporting earnings. the conference call has just started a few minutes ago now. "fast money" friend gene munster is listening in. gene, i don't know if anything's happened yet. the stock is really not doing too much and i'm wondering how you assess the quarter. there are hits and misses here. >> more misses than hits, melissa. you really need to section this into the near versus the long-term. the near-term, there's no sugar coating it, there was a disappointment. the central metric was gross margins x credits, that was 16.3%, missed the street at 17.6%, down from 29% a year ago. this is the central metric, because this is where the story hinges on, is this a car company or a tech company? that trend is not a friend for tesla right now.

second, they talked about slowing production of model y, production growth of model y, and third, the miles driven by fsd came a little bit but low what i had expected. they did 520, up from 300 last quarter. when up put all this ogether, as i said, i think this was a disappointment. i'm surprised that the stock is not down more. i think the reason is this, is that volumes are going to pick up in the december quarter. that should be positive for margins. and i think investors are expecting on the call that's going on now for them to talk about margins improving, so, we're waiting for that. and i did not answer your question, melissa, what's happened in the car so far in the first three minutes, musk came out, he's big into a.i., he described a massive game-changer relative to fsd and how that can change of change the world, and so, it's funny, he's not talking about margins, that's not usually his forte, but it's all about what they can do in a.i. and fsd.

>> yeah, the stock is moving around a lot, just as you're talking, jgene, we saw down 1.8, now down by just about 1.25%. in terms of those, i mean, i thought that hitting the -- hitting the annual number was the hit in the quarter, given the q-3 delivery miss. but you're saying that's not enough, it's all these other things that make it just disappointing here. >> on the wager, there's three negatives we outlined. there are a couple positive. the biggest was that 1.8 million, so, they're going to have a record quarter in terms of deliveries. enough through the quarter, they probably got good visibility on that, so, that's clearly a positive. and second is cyber truck is going to be out. it's coming out november 30th. this is going to be positive for tesla shares. and they don't have to sell many of them, they just have to ramp from 5,000 maybe this year to call it 150,000 next year, and i

think investors are going to start to see that, having a measurable impact on delivery growth. and i just want to highlight that delivery growth. i led with the negatives here, it is directionally a negative quarter, but they grew deliveries in the quarter at 28%. the rest of the big auto in the u.s. grew at 13%. so, they two x what the rest of the industry is doing. it's usually three to four x, so, that's a little bit of a softening, but either way, they are still growing much faster. when you put this together in the long-term, i think traditional auto is in a tight spot, and i think tesla is doing the right moves here, invest in the business, negative for margins, but ultimately, will reap the benefits of an electrified world, along with full self-driving. >> well, gene, something that no one is talking about is how they're going to monetize their charging standard. the rest of the ev space has adopted their charging standard. i've seen this -- i've seen people call this their aws

moment. i've seen them say possibilities of a $5 billion business. how do they monetize that? >> so far, they've said they're not going to monetize it. that's why it doesn't get credit, but you are doing right to thing by flagging this as an opportunity for them, because eventually, they're going to be the standard. 75% of cars probably will be charged on their network. they're effectively -- think of all the gas stations you see, they're effectively going to replace those. and they're going to turn the meter on. that's my suspicion, they'll turn the meter on. if you go and assume that right now, with rivian, they charge $13 a month for access, let's say they charge somewhere between $10 and $20, it can add somewhere between 2% to 5% to earnings in the next decade, so, it is something that is measurable. the reason why it doesn't add more to earnings is that the top line of the car business is just so big that even though it's going from 0 to 3.5 billion, that's my estimate, it still

doesn't move the needle as much. >> by the way, 1 million people have reserved the cyber truck. >> that's a huge number, melissa. let me just put that in perspective. f-150s is having difficulty. best-selling truck in the world. the reserve number, that was -- that's a great number, some of it is fluff, because people won't take their orders, but if they do half of that, the truck is going to be off to a big start, and it's going to just capture the excitement of wall street in the next six months. >> they are saying it will take a year to 18 months for it to be cash flow positive, contribute to cash flow. >> that's why the stock must have dipped back there, based on that comment. >> gene, it's karen. fsd, that's one of, i guess, a couple of holy grails they have. what's your -- how valuable do you think that is? what are you modeling? >> so, we have not -- i know a lot of people have modeled it, we have just taken the approach of, let's get it to be live, and

we think there's a lot of value in the car business, and i want to -- i'm going to answer your question, karen, quickly, but i want to give perspective why we haven't modeled it out. the car business today is somewhere between 2.1 and $2.6 trillion, that's the global car business. there's a huge opportunity for tesla there. so, they're talking about fsd, that's a big opportunity. how that plays out comes down to pricing. they've taken it from 15,000 a year to 12,000. it's probably going to come back to between 5,000 to 7,000 a year ultimately. so, i don't have a specific answer on that, because those, the asp numbers are drifting down so much, but it is the central point of how this business can go from, we talked about 16% gross margins today to 40% gross margins, apple-like, in the next decade. >> all right, gene, always good to get your take. thank you so much for your time. >> thank you. >> gene munster. another headline from the call, which is happening right now, energy is becoming the highest margin in the business.

not entirely surprising. guy, what's your take? >> listen, it's all how the stock trades on the back after what i deem to be a disappointing quarter. three metrics were probably disappointing, if not four. the stock is hanging in there, which is a good sign, let's see how it reacts. but if you would have told me all the things are going to happen with margins, deliveries, revenue -- >> is this a game? is this the game that we play? if i tell you what happened, how will the stock trade? >> let's do that. >> i would have said it's trading -- >> self-play. >> 225 easy. and here we are hanging in there, unchanged on the day. >> 242, 240, that's the level that's, i mean, these uptrends, downtrends, you can get a little cute. but it's holding the bottom end of that range on a difficult number. i think there's enough in there for the bulls. abbott labs. plus, we're going to vegas,

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welcome back to "fast money." abbott labs delivering a better than expected prognosis in its

q-3 earnings. the ceo saying today that the market overestimated the impact of obesity drugs on its glucose monitoring products, going as far to say the drugs could actually boost device sales if used together to manage diabetes. shares finishing the day up nearly 4%. still, the stock is down close to 13% this year. we've talked about the impact of these glp-1 agonists for a long time. especially on this segment. abbott last week, guy, you mentioned, would be -- >> well, we talked about the diagnostics, they're getting beat up. medtronic is one of those names, and abbott said their medical device business and die kagnost were a positive in the quarter. the stock is cheap. it's overdone. a lot of people took down their target numbers, yet the average on the street is still about 115 to 120, which is higher than where we are right now.

valuation is reasonable. i think they sold it off too hard on the back of all the things we've talked about. this is a name you can own here. >> just a point of clarity, i mentioned smed, it got clobbered in all this news. >> davita bounced. anything related. >> yeah. yeah. so -- >> yeah, and -- but remember, the driver for this was that study, at least part of it, that kidney dialysis study, something so definitive, that was the day that the first der riverty sold n , not the second. coming up, las vegas sands reported results. should you roll the dice on this stock, the details on the trade next. more "fast money" in two.

we're getting some more headlines here out of the tesla conference call. a quarter of a million cyber trucks to be produced in 2025. elon is saying he's worried about high interest rates and wants to get a better sense of the global economy before committing to a mexican factory. they also said -- we're going to bring back gene munster here, they are advertising, which is a

real departure from strategy so, a lot of interesting things so far out of this call. >> yeah, i think you put it all under the category, the company is going through a transition right now, as they are weathering this townturn. his commentary about the interest rates, similar to what he said on past calls. elon can, you know, throw some of these curveballs, but that's one that he has thrown in the past. he also talked about related to that, the interest rates, this idea of compound 50% growth rate, that that's impossible, so, he's just tempering some of the growth expectations, essentially, for 2025. and as you think about growing a business, and as they start to move into advertising, that is a sign that, i think, the easy money for evs is off the table. and the fact they're going to have to start to do more advertising, traditional car companies spend 10% of their total budgets on advertising, it's incredible how much they spend. tesla, it's been zero to date. and i don't want to kind of confuse the central point here.

they're going to have to start to advertise to keep demand up, but that doesn't mean the opportunity has diminished. it's going to take, you know, five, ten, 15 years to get to electrification. that future is inevitable. it is -- we're going to be there, and i think they just need to take the proper steps, including advertising, to get there. >> any mention or guidance so far on further price cuts, gene, before we let you go? >> haven't heard anything that yet. >> all right, gene, thank you. gene munster. let's move on here. h earnings alert on las vegas sands. it announced a $2 billion stock buy-back. contessa brewer has the details. >> the boost in shares was likely driven by that $2 billion share repurchase plan through 2025 on the call. sands president patrick dumont indicated there's a shift in sentiment, where return of capital to shareholders is concerned, where sheldon adelson used to shout yeah, dividends,

dumont said, in the future, the company is going to lean more heavily on stock buy-backs. the ceo said the stock is trading at covid levels, so, there's an opportunity to go in there. and especially as the company says it's sitting on $5.6 billion in cash. the company indicates it is ready to put its money to work in its properties. a massive remodel in singapore will result in four times the number of suites, that, of course, attracts high rollers. travel and tourism spending from china's rebounding, that's lifting singapore and macao. and in macao, visitation still down 20% from pre-pandemic levels, but occupancy, 96%. that's higher than 2019, with more per capita spend. company says it's in fact making more money on retail than pre-covid days, and goldstein says the gaming business should follow the same trajectory as singapore. we're going to hear more from him tomorrow in an exclusive interview on "the exchange."

that will happen at about 1:30 p.m. eastern time tomorrow, melissa. >> all right, look forward to that. contessa, thank you. tim, you're take on this? >> the customer makes it so much more profitability. it's got the best balance sheet. 25% discount. and record revenues, despite 65% ggr. macao is not as important as the headline. >> and you get that singapore element, where you don't get with the other ones. if you believe in the u.s. having a strong economy and we've already been in recession, back half of 2022, look for the vegas stock. up next, final trades.

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time for the final trade. tim? >> lvs. pull-back's been an opportunity. got a covid valuation. >> karen? >> yeah, so, i was away last weekend, went to my high school reunion. there was a woman there, great coach, edge ucator, who sent regards from pat si carter. >> hi, patsy. >> net fflix is your final trad. >> yes. >> dangerous world out there. general dynamics, probably the

recipient of a lot of funds. >> karen was voted ms. likely to be a bad ass. and that was correct. >> >> yep. >> spr. i think the bottom is in, melissa. >> all right, thank you for watching "fast money." we'll see you back here tomorrow at 5:00. meantime, don't go anywhere. "mad money" with jim cramer starts right now. starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you a little money. my job is not just to entertain, but to put it all in context so, call me at 1-800-743-cnbc newsom or tweet me @jimcramer. i am constantly on this show telling you that discipline always trumps conviction. i tell it to you over and over and