Tesla Rallies 21% on Strong Earnings Report

Tesla rallied 21% on Thursday, marking its best day since 2011 after reporting stronger-than-expected third-quarter results and a promising delivery outlook for 2025.

Strong Earnings Results

Tesla Inc (NASDAQ: TSLA) saw its stock rise significantly during Thursday trading following the announcement of its quarterly results late Wednesday. The company's performance exceeded Wall Street estimates, driven by increased margins which sparked positive reactions among analysts.

Wedbush highlighted that the gross margins (excluding credits) surged back to 17.1%, well above the anticipated 15.1%. This improvement indicates a potential return to the 20% margin level in the second half of 2025.

Promising Delivery Outlook

Additionally, Tesla's delivery growth forecast for 2025 is set at 20%-30%, significantly outperforming initial expectations, which were only in the 10%-12% range.

During the post-earnings call, CEO Elon Musk emphasized various growth catalysts for Tesla in the coming years. These include plans for a more affordable EV priced under $30,000, advancements in autonomous driving technology, cost-cutting strategies, Cybercab production, and enhancements to the company's energy and storage business.

Overall, Tesla's results and outlook have positioned the company favorably for future growth.