Tesla Stock Gains 22% After Earnings Report

Tesla's stock surged nearly 22%, marking its best single-day gain since 2013, as the company reported strong third-quarter earnings that exceeded analyst expectations. Revenue for the quarter reached $25.18 billion, slightly below forecasts but up 8% year-over-year, with earnings per share of 72 cents, surpassing the average estimate of 58 cents. The surge was primarily attributed to improved profit margins, boosted by $739 million from environmental regulatory credits and $326 million from the Full Self-Driving system. CEO Elon Musk projected a 20-30% increase in vehicle deliveries for next year, despite analysts expressing skepticism, with some forecasting more conservative growth rates. Tesla plans to initiate production of a lower-cost vehicle in early 2025, amidst concerns about its focus shifting towards AI and robotics. Overall, the optimistic earnings report and growth forecast reinvigorated investor confidence in Tesla's core automotive business.