Tesla’s stock price surged by 20% on Thursday, October 24, marking its best performance since 2013. The electric car manufacturer released better-than-expected financial results the day before, forecasting a strong growth in car deliveries for 2025.
In a Wednesday evening earnings call, Tesla announced robust revenue figures for the third quarter, reaching $25.18 billion, slightly below analysts’ expectations of $25.37 billion, but an 8% increase from the same period last year. The adjusted earnings per share reported by Tesla were 72 cents, higher than the average analyst expectation of 58 cents, with a profit margin increasing from the expected 17.9% to 19.8%.
Following the disclosure of financial data, Tesla’s stock price surged significantly, rising by approximately 20% to around $257 by Thursday afternoon.
Dan Ives, an analyst at Wedbush Securities, noted that the highlight of Tesla’s third-quarter financial report was the profit margin. The data now provides investors with a strong signal that they can expect good returns from their investments in Tesla.
Analysts at JPMorgan Chase mentioned in a report that the $739 million in regulatory credits offered by environmental regulatory agencies boosted Tesla’s profit margin in the third quarter, serving as a potentially unsustainable driver for profitability and cash flow.
Tesla’s profits were also boosted by the company’s Full Self-Driving (FSD) supervision system. CFO Vaibhav Taneja stated in Wednesday’s earnings call that Tesla generated $326 million in revenue from FSD in the third quarter by incorporating it into their electric pickup truck, the Cybertruck, and introducing a feature called “Actually Smart Summon.”
Investors were pleased to hear about Tesla’s preparations for 2025. CEO Elon Musk expressed during the earnings call his “best guess” that car deliveries would increase by 20% to 30% next year, citing lower car costs and the rise of autonomous driving technology.
The surge in Tesla’s stock price on Thursday is the second largest in the company’s history, and the biggest since a 24% increase in May 2013. This rise has offset the losses for Tesla this year, resulting in a 3% increase in the stock price up until 2024.