Tesla Scores Big With Blockbuster Earnings. Stock Soars 22% for Biggest Gain in 11 Years.

Tesla Scores Big With Blockbuster Earnings. Stock Soars 22% for Biggest Gain in 11 Years.

Al Root

It's official. CEO Elon Musk knocked it out of the park with Tesla's latest quarterly report.

Tesla stock closed its first day of trading following the results with an incredible gain of 21.9%, closing at $260.48, wiping out its losses for 2024 and adding some $150 billion to its market value. It was the largest one-day market value increase ever for the shares and the biggest one-day percentage gain since May 9, 2013, when Tesla stock added 24.4%, according to Dow Jone Market Data.

The one-day gain is more than the combined market value of General Motors, Ford Motor, and Stellantis combined.

Earnings, of course, did it. Tesla reported a better-than-expected earnings per share of 72 cents, up from the 66 cents reported in the third quarter of 2023. Not only did earnings rise, Tesla’s automotive gross profit margins and operating profit margins improved. Profit margins in its other businesses, including energy storage, set a record.

Wall Street didn’t find much to complain about. Most analysts praised the margin performance and management’s success at controlling costs. There was one upgrade from Hold to Buy, while the average target for the stock price among analysts tracked by FactSet edged up to $220 a share from $216.

Beyond third-quarter results, investors were energized by Tesla’s growth forecast. The company still expects to increase vehicle deliveries compared with 2023, which implies a record of about 515,000 deliveries in the fourth quarter, up about 6% year over year. For 2025, Musk said, 20% to 30% growth is possible, while Wall Street was projecting closer to 10%.

Thursday’s move left Tesla stock up about 5% year to date.