Tesla’s stock surged after the company reported better-than-expected earnings and improved margins for the third quarter.
I think it would be great if Tesla allowed more vehicles in their lineup to have powerShare capabilities.
What do you think? pic.twitter.com/THOCKD9TnV
— Nic Cruz Patane (@niccruzpatane) October 27, 2024
The electric vehicle maker’s shares jumped 22% last Thursday, their best day since 2013, and rose another 3.3% on Friday. The rally caused Tesla short sellers to lose $4.2 billion in just two days, according to data from S3 Partners.
To charge our two Tesla’s last night costs only $1.
$0.028/kWh X 36 kWh added.
Two performance cars cost next to nothing to own. pic.twitter.com/ABOLcySVTn
— Nic Cruz Patane (@niccruzpatane) October 26, 2024
This isn’t the first time this year that short sellers have paid dearly for betting against the Elon Musk-led company. Despite mixed results, with revenue falling short of expectations at $25.18 billion, many Wall Street analysts reiterated their Buy ratings on Tesla stock following the report. Bank of America even raised its price target to $265 from $255.
To equal Tesla's market cap, you would need the 9 largest auto companies combined.
This shows you that Tesla is more than just a car company. pic.twitter.com/wGSbOYzLZk
— Roland Pircher (@piloly) October 26, 2024
Morgan Stanley analyst Adam Jonas was encouraged by Tesla’s emphasis on growing its auto business, which accounts for 80% of the company’s revenue.
tesla’s stock jumps after earnings
CEO Elon Musk commented on targeting 20% to 30% growth in electric vehicle deliveries in 2025 while focusing on lowering production costs.
However, not all analysts are bullish on the stock. Out of the 60 analysts covering Tesla, 20 have a Hold rating, and 15 recommend selling shares. On average, they see shares falling to $228 over the next 12 months.
By the end of this year, Elon Musk's companies (Tesla & xAI) will have brought online roughly $10 billion worth of training compute capacity in 2024 alone.
Tesla already deployed and is training ahead of schedule on a 29,000 unit Nvidia H100 cluster at Giga Texas – and will have… pic.twitter.com/UgvmsBLuQp
— Sawyer Merritt (@SawyerMerritt) October 29, 2024
The strong earnings report also had a significant impact on Elon Musk’s personal wealth. Musk, the world’s richest man, saw his net worth grow by an astonishing $34 billion in a single day, cementing his lead atop the ultrarich rankings. Tesla’s stock, which accounts for three-quarters of Musk’s wealth, had its best performance since 2013.
During the earnings call, Musk declared his vision for Tesla’s future, stating, “My prediction is Tesla will become the most valuable company in the world, and probably by a long shot.” He revealed plans to roll out “Cybercab,” with production targets in the millions per year, although regulatory hurdles remain a challenge.
