Tesla experienced its second-best trading day on record, witnessing a substantial surge in market capitalization by over $150 billion – the largest single-day increase ever seen.
The share price climbed by $46.83, or 21.92%, concluding at $260.48 per share. This spike followed impressive third-quarter earnings results, surpassing analysts’ expectations. Despite a minor revenue shortfall, Tesla surpassed earnings estimates, propelling its shares skyward.
Earnings per share stood at 72 cents for the third quarter, compared to the 58 cents forecasted by LSEG, while revenue reached $25.18 billion, falling short of the anticipated $25.37 billion.
Meanwhile, revenue surged by 8% from the previous year to $23.35 billion, leading to an increase in net income to approximately $2.17 billion or 62 cents per share, up from $1.85 billion or 53 cents per share, a year ago.
Tesla’s strong profit margins in the quarter were supported by a $739 million boost from automotive regulatory credits. The company is known for its surplus of credits as it exclusively produces electric vehicles, which other automakers can purchase if they do not meet the required quota for regulatory credits.
Automotive revenue saw a 2% increase to $20 billion from $19.63 billion the previous year, remaining relatively stable since late 2022. Energy generation and storage revenue witnessed a remarkable 52% surge to $2.38 billion, with services and other revenue, inclusive of non-warranty repairs for Tesla vehicles, jumping 29% to $2.79 billion.
