Tesla’s stock surged close to 22% on Thursday after the electric vehicle maker reported strong earnings while also sharing the timeline for a cheaper model rollout.
Tesla narrowly missed the analysts’ estimates on revenue, reporting $25.18 billion for the third quarter compared to the expected $25.4 billion. However, the figure represents an 8% year-over-year increase and improvement on $25.05 billion it had in the second quarter.
The company’s adjusted earnings per share, on the other hand, came at $0.72 to beat the estimates of $0. 58. Its margin figure was at 19.8% versus the expected 16.8%, accompanied by an adjusted net income of $2.5 billion and $2.9 billion in free cash flow.
“We delivered strong results in Q3 with growth in vehicle deliveries both sequentially and year-on-year, resulting in record third-quarter volumes,” Tesla stated in a press release.
Tesla also said that the preparations for offering new vehicles are “underway,” sharing that the highly-anticipated affordable model, which is rumored to have a price below $30,000, will launch in the first half of 2025. Company’s CEO Elon Musk added during an earnings call that the expected volume growth in 2025 will be between 20% and 30%.
The investors welcomed the news, causing Tesla’s stock to surge 21.92% and close at $260.48 per share. This marked the stock’s best day in 11 years. It also brought the company’s shares 4.85% up year-to-date.