Tesla’s $25B CapEx Splurge Spooks Investors, Trump Weighs Rescuing Spirit Airlines

Markets hit record highs Wednesday as corporate earnings overshadowed escalating tensions from the Iran conflict. The S&P 500 rose 1% and Nasdaq over 1.6% after President Trump extended a ceasefire, though no peace deal exists and the Strait of Hormuz remains closed with reports of Iranian attacks on vessels. Oil prices rebounded—WTI above $94 per barrel and Brent over $100—breaking the prior pattern where rising oil dragged stocks down. About three-quarters of S&P 500 reporters have beaten expectations, with profit growth tracking toward 15%, fueling the rally despite more big names due soon.

Tesla's Mixed Earnings and $25 Billion CapEx Push

Tesla's quarterly results showed solid headline figures: earnings of 41 cents per share beat estimates, revenues grew 16% to $22.4 billion (slight miss), and free cash flow came in at a positive $1.4 billion against expectations of a $2 billion burn. Auto margins reached 19.2%, the highest in over a year, aided by lower material costs, higher average selling prices, and rising gas prices boosting EV interest. Deliveries rose just 6% year-over-year, signaling stagnant car growth.