Biggest stock movers Thursday: TSLA, IBM, and more

Stock futures edged slightly higher in Thursday’s premarket session as investors weighed a slew of corporate earnings reports.

Here are some of Thursday’s biggest stock movers:

Biggest stock gainers

• Tesla (TSLA) shares surged 11% after the EV leader reported strong Q3 profits. The automotive gross margin excluding credits came in at 17.1%, surpassing the consensus estimate of 15.1%. The operating margin rose to 10.8% of sales, up from 6.3% last quarter and 7.6% last year. CEO Elon Musk announced that Tesla will begin producing more affordable models in the first half of 2025, with vehicle production projected to grow by 20% to 30% in 2025. Cybercab production is anticipated to scale up aggressively in 2026. On autonomy, Musk highlighted continued improvement in miles-per-intervention metrics and anticipates that Full Self-Driving (FSD) will surpass human driving safety by Q2 2025. Additionally, Tesla plans to launch ride-hailing services in Texas and California next year.
• Seadrill (SDRL) shares surged 12% following reports of ongoing discussions with Transocean (RIG) about a potential merger. The combination would align with Transocean’s strategy of expanding its backlog of work, utilizing some of the world’s most advanced deepwater drilling rigs. Both companies have faced challenges amid a prolonged downturn in the offshore drilling industry. However, the sector is experiencing renewed growth due to steady oil prices and slower production from U.S. shale fields.

Biggest stock losers

• International Business Machines (IBM) shares dropped over 4% after the company posted mixed Q3 results, with revenue missing consensus expectations. Software revenue grew by 10%, Consulting remained flat, and Infrastructure revenue declined by 7%. IBM CEO Arvind Krishna expressed confidence in achieving more than $12B in free cash flow for the year, driven by continued expansion of operating margins. For Q4, IBM expects constant currency revenue growth to be consistent with Q3 levels.
• Boeing (BA) shares fell more than 3% after factory workers voted to reject the company’s contract offer, prolonging a six-week strike that has halted production of its top-selling jetliners. The tentative deal, reached over the weekend, proposed a 35% wage increase over four years, along with improvements to benefits and working conditions. The vote coincided with Boeing’s report of a $6.2B Q3 loss and a warning that it would remain cash flow negative through 2025 after burning through more than $10B in the first nine months of 2024.