The Rundown - Tesla's China Sales Fall to Three-Year Low, CoreWeave Lowers Outlook Amid Data Center Delays

Episode Date: November 11, 2025

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Public.com presents the rundown. Your daily market update in under 10 minutes. My name is Zaid Admani, and today is Tuesday, November 11th. In today's episode, we'll give you the latest on the government shutdown and the market's reaction to it. We'll also recap earnings from Corweave and Nebius and tell you why their stocks are dropping despite strong revenue growth. Then stick around to the end of the show to find out why SoftBank is

selling their entire stake in NVIDIA. We got a great show for you today. Let's go. Markets kicked off the week with a strong rally. The S&P 500 jumped 1.5% on Monday, and the NASDAQ was up 2.2%. Looks like the markets were happy to see the light at the end of the tunnel for the government shutdown,

a bill that would fund the government through the end of January past the Senate yesterday, and it now heads to the House of Representatives. with the likelihood that the government will reopen sometime this week. So Wall Street took that as a sign to pile back into tech and AI stocks. The tech sector was the best performing sector yesterday, with many big tech names recovering from last week's losses. And it wasn't just tech.

Crypto also saw a nice pop. Bitcoin is back above $105,000. And gold also rallied. It's now about $4,100 an ounce, which is the highest price in over three weeks. Now, I don't want to jinx it and celebrate too early because Congress still needs to do their jobs and take it over the finish line. But once the shutdown does end, federal workers will get back to work.

They're going to start getting paid. And hopefully there will be less chaos and delays at the airports as well. And don't forget, we're going to start getting economic data again from the government, which I'm sure many investors are looking forward to because we haven't gotten a jobs report or an inflation report in over a month. So I'm really looking for things to get back to normal. We're going to stay on top of all of it and keep you guys posted on all the market moves and fresh economic data as it comes out.

So make sure you guys are subscribe to the podcast and tuning in every day to stay in the loop. Let's run through some headlines. Starting with Tesla. Tesla sales in China dropped to just 26,000 vehicles in October. That's the company's lowest monthly total in three years. It's a 36% decline from a year ago and a steep drop from September where Tesla sold more than 71,000 cars in China. If you look at the overall Chinese EV market, Tesla's share of that market dropped to just 3.2% in October down sharply from the 8.7% in September. This is just another data point showing that Tesla struggled in October all over the world.

They had sales slowdowns in many parts of Europe, including Germany, Spain, and the Netherlands. Meanwhile, competition in China continues to heat up. Local automakers like Xiaomi are selling record numbers of EVs. And then you have BYD, which is the largest EV maker in the world. They just raised their international sales target to 1.6 million vehicles for 2026. Tesla continues to face competitive pressures from Chinese EV makers, and it could be why CEO Elon Musk has been pivoting the company to focus more on robotics and robotaxies. In fact, I think that's the only reason why Tesla stock is where it's at today.

Investors are hoping that Tesla's big bet on their optimist robots and robot taxis pays off. This seems like they're starting to lose the international EV market to Chinese EV companies. Let's shift gears and talk about a couple of companies powering the AI boom. Corweave and Nevis, both of these nebulae companies reported earnings, and they had similar results. Let's start with Corweave. They're one of the biggest neoclouds out there. They beat on earnings with revenues jumping 134% year over year last quarter to $1.4 billion. But the company's full year guidance came in at $5 billion, which was slightly below analyst estimates.

Now, Corweave is blaming the weaker guidance on a third-party data center builder for falling behind schedule in building the data centers. Basically, one contractor's delay is holding up the part of their data center rollout, but Corweave insists that demand is still strong and the issues won't affect its massive $55 billion backlog. Investors do seem to be concerned about the delay and Corweave stock is down more than 14% at the time of this recording. And then you have Nebius. their revenues were up an insane 355% in Q3. They also announced a five-year $3 billion AI infrastructure deal with Meta. It's their second largest deal after signing a $17 billion deal with Microsoft earlier this year. Nebius is also dealing with some supply constraints.

They sold out of all of their cloud capacity in Q3, and they're already nearly sold out for the current quarter. The company says they project annualized revenues between $7 and $9 billion by the end of 2026. So it's a pretty similar story for both companies. Corweave is running into data center delays because they can't build them fast enough. And Nebius is literally out of data center space entirely. I guess that's another bottleneck to deal with when it comes to the AI buildout. You could have all the GPUs in the world, but if the data center isn't built to power these GPUs,

well, then those GPUs are kind of useless. On the bright side, at least these neocloud companies are showing a strong demand for AI. I wonder, though, what percentage of Nebius's and Coreweaves's revenues is coming from big tech hyperscalers. And what happens if all of a sudden they stop spending money on AI CapEx? That's the big risk here. Let's talk about some stocks making moves today. Paramount stock is rising this morning after the company announced a major cost-cutting plan under new CEO David Ellison, who is the founder of Skydance Media, who merged his company with Paramount earlier this year. Paramount is targeting $3 billion in savings and they plan to lay

off around 1,600 employees as part of a broader restructuring plan. Now, this is on top of the 600 workers who already took voluntary severance earlier this year after refusing to return to the office five days a week. David Ellison says that he's doubling down on parts of the company with strong growth potential, which includes Paramount Plus, which is a streaming service. He's also focused on sports rights and movies. Paramount signed a deal with the UFC earlier this year, and they planned to release 15 movies a year starting in 2026. But, But that's not all. On top of the restructuring strategy, Paramount is also trying to buy Warner Brothers Discovery, which owns the DC superhero universe and also HBO. Paramount's previous bids were rejected by Warner Brothers for being too low. But remember, David Ellison's dad is Larry Ellison, the founder of Oracle. He's also the second richest man in the world with a net worth of $300 billion. So I think Warner Brothers is hoping that David Ellison calls his dad Larry to up the bid a bit. We'll see what happens with that. Investors like the direction the company is headed, though, and

Paramount stock is up more than 10% this morning at the time of this recording. Now, on the flip side, shares of Raghetti computing are down this morning after the quantum computing company reported underwhelming revenues. The company brought in $1.9 million in revenues for the quarter, missing estimates of $2.2 million. I think the bigger concern is that revenue is down about 21% year over year. Now, Rgeti says they're doubling down on R&D. They've partnered with Montana State University for quantum R&D, as well as government agencies within the U.S. and India.

But investors weren't loving it. Raghetti's stock is down around 5% this morning at the time of this recording. If you zoom out, though, the stock has gone up around 2,000% over the past 12 months, and the company currently has a market cap of around $10 billion. It kind of blows my mind that their market cap is over $10 billion when their revenues are less than $2 million a quarter. Let's wrap the show with the fun fact. SoftBank just sold their entire stake in.

in Nvidia for $5.8 billion. SoftBank is a Japanese conglomerate led by Masa Sun. He's known for making big bets, especially in tech companies. And some of his bets have worked out, like his early investments in Alibaba. But others, not so much, like his infamous investment in WeWork. It seems like Masa has turned his attention to AI, just like everybody else. SoftBank has already poured roughly $7 billion into Open AI, and they plan to invest another $20 billion in January. So it's kind of interesting that Masa Sun is selling his

Nvidia's stake, arguably the biggest winner of the AI boom so far, to double down on OpenAI. Maybe it's a sign that he thinks that the next phase of AI growth will go from chips to software. Or maybe he thinks that Nvidia's valuation is topped out at $5 trillion. Now, here's a bonus fun fact about SoftBank and Nvidia. SoftBank used to own around 5% of Nvidia back in 2017. In fact, they were Nvidia's largest shareholder at one point. But then Masa Sun sold the entire stake in 2019 for a $3.3 billion profit. Now, SoftBank bought some shares back in the company, but if they had hung on to their 5% stake, it would be worth around $250 billion today. Instead, their stake was worth around $5.8 billion.

If I had done that, I don't think I could ever look at Nvidia's stock ever again. Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did, and you have like five extra seconds, consider giving us a five-star rating on Apple, Spotify, YouTube, wherever you listen to your podcast. And if you are listening on Spotify, don't forget to vote in today's Spotify poll.

Leave us a comment on Spotify. All that engagement really does help us out, and it helps other people find the show. Thank you guys so much for listening, watching, and commenting. Shout out to Mike and Connation. for all the work behind the scenes. And we'll see you guys back here tomorrow. Rosen lasagna, medium power, 15 minutes.

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