Tesla’s stock (TSLA) surged by 22% in a single day, the largest jump in over a decade, after CEO Elon Musk shared optimistic growth targets and assured investors he’s still focused on electric vehicles.
Musk promised a 20-30% sales increase for 2025 and announced plans for a more affordable Tesla model in early 2025. This news erased recent stock losses due to concerns about Musk’s focus on AI and robotaxi projects.
Tesla’s share price reached a high of $262.2 with nearly 200 million shares traded, adding $150 billion to its market value. Ed Egilinsky from Direxion attributed the sharp rise to both relief over better-than-expected Q3 results and short covering.
During Q3, Tesla’s margins were boosted by lower production costs, with each car now costing about $35,100 to make. Revenue from the Full Self-Driving (FSD) software added $326 million, which Musk believes will drive future margin growth.
However, some investors remain cautious. Tesla’s stock trades at 72.75 times its projected earnings, compared to Ford’s 5.94 and Microsoft’s 30.79. Prominent investor Ross Gerber expressed a desire for Musk to refocus on core EV goals rather than AI projects.
As more investors respond to Tesla’s evolving strategy, the company continues to balance innovation in both its EV and AI ventures.
