Tesla Surges on Strong Earnings and Bold Growth Predictions

Tesla shares spiked 10.7% after reporting third-quarter earnings that surpassed analysts' expectations. The company posted earnings per share of $0.72, exceeding the $0.58 forecast, while revenue hit $25.18 billion, just short of the $25.37 billion expected. 

This marks an 8% year-on-year revenue increase from $23.35 billion, with net income rising to $2.17 billion, or $0.62 per share, compared to $1.85 billion, or $0.53, a year earlier.

Automotive revenue saw a modest 2% increase to $20 billion, while energy generation and storage revenue soared by 52%, reaching $2.38 billion. Services and other revenue, which includes non-warranty vehicle repairs, surged 29% to $2.79 billion. Tesla also gained $739 million from selling automotive regulatory credits, which helped boost profit margins.

CEO Elon Musk projected vehicle growth between 20% and 30% next year, driven by lower-cost vehicles and the rise of autonomous technology. This estimate surpasses analysts' expectations, who predict a 15% increase in deliveries.

Tesla’s Cybertruck, despite initial quality challenges, became the third-best-selling electric vehicle in the U.S., with over 16,000 units sold in the third quarter. Tesla’s CFO noted that the Full Self-Driving (FSD) system added $326 million in revenue, benefiting from new features.

Deliveries for the quarter totaled 462,890, up 6% from the previous year but below expectations. As Tesla faces rising competition, particularly from Chinese manufacturers, the company remains focused on launching more affordable models in 2025.