London pre-open: Stocks seen flat after disappointing update from Tesla
By Michele Maatouk
Date: Thursday 23 Oct 2025
(Sharecast News) - London stocks were on track for a steady start on Thursday following solid gains in the previous session, as investors mulled a disappointing update from Tesla, amid renewed worries about the trade spat between the US and China.
The FTSE 100 was called to open flat at around 9,515.
Ipek Ozkardeskaya, senior analyst at Swissquote, said: "Trade worries resurfaced yesterday - yes, resurfaced instead of easing - after reports that the Trump administration is considering new restrictions on software exports to China. Are we surprised? Not really. These on-and-off headlines have been circulating for nearly a year, repeatedly injecting short-term anxiety into the markets. That's exactly what happened yesterday: major US indices retreated, led by technology names. Headlines could turn better anytime, or worsen.
"Elsewhere in earnings, Tesla missed expectations despite record sales. The record, however, was largely due to buyers rushing to purchase EVs before the end of federal subsidies - a one-off jump unlikely to prevent Tesla from posting a second consecutive annual sales decline. Profits plunged as operating expenses rose by roughly 50%, partly due to higher costs linked to renewed trade duties, estimated at around $400 million. While Musk continues to shift focus toward AI, humanoid robots and robotaxis, those ventures won't offset the decline in EV revenues anytime soon. And this time, unlike the previous earnings announcements, investors weren't entirely convinced by the latest pitch, and Tesla shares dropped 3.8% in after-hours trading."
In UK corporate news, Lloyds Banking Group reported a 36% fall in third-quarter profit after taking an extra £800m hit from the motor finance scandal.
Pre-tax profit for the three months to 30 September came in at £1.17bn. Lloyds said its "best estimate" of its potential liability over the mis-selling of financing would be almost £2bn. Underlying net interest income rose 7% to £3.4bn.
Consumer goods giant Unilever reiterated its full-year outlook despite "subdued" market conditions.
Updating on third-quarter trading, the blue chip said turnover rose 3.9% on an underlying basis, to €14.7bn, or by 4% once the soon-to-be-demerged ice cream business is stripped out.
Driving the increase was strong growth for Unilever's biggest products - known as its power brands - which saw underlying sales rise 4.4% in the three months, with volume growth ahead 1.7% and prices 2.6%.
Holiday Inn owner InterContinental Hotels Group said that it remained on track to meet full-year profit and earnings expectations after revenue per available room ticked up 0.1% in the three months ended 30 September.
IHG also said it had delivered "another strong quarter of development activity", with openings up 17% and signings up 18%.
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