Tesla Inc. reported a significant earnings boost, surprising analysts and investors alike. Following the announcement, the company's stock surged 22% in a single day, marking its largest increase since 2013.
On October 25, 2024, Tesla reported third-quarter revenue of $25.18 billion, slightly below expectations but up 8% year-over-year. Adjusted earnings per share reached 72 cents, exceeding the average analyst estimate of 58 cents. The results were bolstered by $739 million in revenue from environmental regulatory credits and $326 million from its Full Self-Driving (FSD) system.
CEO Elon Musk projected vehicle growth between 20% to 30% for the upcoming year, attributing this to lower-cost vehicles and advancements in autonomy. He also announced plans to begin production of the Cybercab robotaxi by the end of 2026.
The stock rally increased Musk's net worth by approximately $33.5 billion, bringing his total to about $270.3 billion, positioning him as the world's richest person, surpassing Amazon founder Jeff Bezos by $61 billion. Despite the gains, Tesla's stock remains 35% below its all-time high from 2021.
Amidst the positive outlook, Tesla faces stiff competition in the EV market, particularly from companies like BYD and Ford, which are ramping up production and sales. Analysts have noted that while Tesla's earnings were strong, the sustainability of its profit margins remains a concern due to reliance on regulatory credits.