(Bloomberg) — Tesla Inc.’s shares surged the most in more than 11 years after the carmaker reported surprisingly strong earnings and forecast as much as 30% growth in vehicle sales next year.
Most Read from Bloomberg
Third-quarter results were buoyed by Tesla turning a corner with the Cybertruck, which generated profit for the first time. Lower material costs, an expanding energy business and sales of regulatory credits to automakers that need help complying with emissions limits also contributed to Tesla’s best quarterly earnings in more than a year.
Chief Executive Officer Elon Musk offered an upbeat outlook for 2025, citing the rollout of more affordable models that Tesla has yet to identify. “Something like 20% to 30% growth next year is my best guess,” he said on a webcast.
Tesla’s shares jumped 22% Thursday in New York, the biggest gain since May 2013. That helped add tens of billions of dollars to Musk’s net worth and sent the stock into positive territory for the year, erasing a slump in the weeks since the CEO unveiled self-driving taxi and van prototypes.
Musk is betting Tesla’s future on autonomy, having scrapped plans for a new vehicle that was going to be cheaper than the Model 3 sedan. By reporting an uptick in profitability and optimism about next year, the CEO assuaged concerns that Tesla’s core business will continue slipping while he prioritizes a years-long pursuit of self-driving technology.
“Investors who wanted something today got better-than-expected profit and guidance for growth in deliveries,” said Gene Munster, managing partner of growth-investment firm Deepwater Asset Management. “The long-term investors got the golden carrot.”
Government Gig
Musk spent a brief portion of the late-Wednesday webcast discussing what he might do in a second Trump administration.
After calling for a federal approval process for autonomous vehicles, the Tesla CEO said he would “try to make that happen” if appointed to a government role he and Donald Trump first discussed in August. The billionaire has backed the Republican nominee by pouring $75 million into a super political action committee supporting the candidate.
Musk reiterated that he expects Tesla to produce a robotaxi called Cybercab in 2026 and said the company will aim to make at least 2 million units annually, without specifying by when. Tesla has yet to make that many cars across its entire lineup in a year.
(Bloomberg) — Tesla Inc.’s shares surged the most in more than 11 years after the carmaker reported surprisingly strong earnings and forecast as much as 30% growth in vehicle sales next year.
Most Read from Bloomberg
Third-quarter results were buoyed by Tesla turning a corner with the Cybertruck, which generated profit for the first time. Lower material costs, an expanding energy business and sales of regulatory credits to automakers that need help complying with emissions limits also contributed to Tesla’s best quarterly earnings in more than a year.
Chief Executive Officer Elon Musk offered an upbeat outlook for 2025, citing the rollout of more affordable models that Tesla has yet to identify. “Something like 20% to 30% growth next year is my best guess,” he said on a webcast.
Tesla’s shares jumped 22% Thursday in New York, the biggest gain since May 2013. That helped add tens of billions of dollars to Musk’s net worth and sent the stock into positive territory for the year, erasing a slump in the weeks since the CEO unveiled self-driving taxi and van prototypes.
Musk is betting Tesla’s future on autonomy, having scrapped plans for a new vehicle that was going to be cheaper than the Model 3 sedan. By reporting an uptick in profitability and optimism about next year, the CEO assuaged concerns that Tesla’s core business will continue slipping while he prioritizes a years-long pursuit of self-driving technology.
“Investors who wanted something today got better-than-expected profit and guidance for growth in deliveries,” said Gene Munster, managing partner of growth-investment firm Deepwater Asset Management. “The long-term investors got the golden carrot.”
Government Gig
Musk spent a brief portion of the late-Wednesday webcast discussing what he might do in a second Trump administration.
After calling for a federal approval process for autonomous vehicles, the Tesla CEO said he would “try to make that happen” if appointed to a government role he and Donald Trump first discussed in August. The billionaire has backed the Republican nominee by pouring $75 million into a super political action committee supporting the candidate.
Musk reiterated that he expects Tesla to produce a robotaxi called Cybercab in 2026 and said the company will aim to make at least 2 million units annually, without specifying by when. Tesla has yet to make that many cars across its entire lineup in a year.
Leave feedback about this