Tesla beat on earnings, but a massive AI spending plan stole the spotlight.
Tesla (TSLA) reported Q1 2026 earnings per share of $0.41, beating Wall Street's $0.35 estimate. Revenue came in at $22.39 billion, slightly missing the $22.64 billion consensus.
The real bombshell was FY2026 CapEx guidance jumping to $25 billion from the previous $20 billion target. Q1 CapEx alone surged 67% YoY to $2.49 billion, signaling an aggressive pivot toward AI infrastructure.
Shares initially climbed 4% after hours before pulling back. CEO Elon Musk acknowledged that 4 million Tesla vehicles cannot yet run unsupervised Full Self-Driving and announced Intel (INTC) 14A process for the Terafab AI chip complex.
Broader markets hit fresh all-time highs. The S&P 500 closed at 7,137.90 (+1.05%) and the Nasdaq Composite surged 1.64% to 24,657.57, led by tech after President Trump extended the US-Iran ceasefire indefinitely.
📊 Market Wrap
🧠 Analyst Notes
💬 Market Highlights
Abbott Leads as Most Oversold Healthcare Stock Amid Q1 Earnings
As markets enter the second week of Q1 earnings, several healthcare stocks are showing signs of heavy selling pressure. Abbott Laboratories (ABT) stands out as the most oversold name with an RSI of 25, followed by Johnson & Johnson (JNJ). Other names such as Boston Scientific (BSX), McKesson (MCK), and Gilead (GILD) are also among the most oversold, all with RSI levels below 35.
The Relative Strength Index is a momentum indicator that measures price movement strength on a scale of 0 to 100. Readings below 30 typically signal oversold conditions, suggesting that selling pressure may have pushed prices below fair value, potentially opening room for a technical rebound if supported by fundamentals.
Salesforce and Google Cloud Expand AI Partnership for Autonomous Workflows
Salesforce (CRM) and Google Cloud are deepening their partnership to enable AI agents capable of executing end-to-end workflows across both platforms. The integration aims to address fragmented data systems while reducing the need for manual data transfers and context switching.
These AI agents will operate within tools like Slack and Google Workspace, powered by platforms such as Agentforce and Gemini Enterprise. The collaboration reflects a broader shift toward autonomous enterprise operations, where AI increasingly replaces manual processes and enhances decision-making across business systems.
Palantir Secures $300M USDA Contract for Farm Services Modernization
Palantir (PLTR) has signed a $300 million agreement with the U.S. Department of Agriculture to modernize digital services for farmers. The contract focuses on improving fraud detection, strengthening supply chain oversight, and enhancing operational efficiency across farm programs.
It also supports the “One Farmer, One File” initiative, which aims to simplify access to government programs, reduce paperwork, and accelerate payments, including disaster assistance. The deal reinforces Palantir’s growing presence in government data infrastructure, building on its prior involvement in large-scale federal support programs.
📅 Earnings Watch
Today's spotlight falls on American Airlines (AAL) reporting pre-market amid elevated fuel costs with Brent above $100, and Honeywell (HON) with consensus at $2.31 EPS and $9.30 billion revenue.
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