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Tesla Shares Soar 19% as Musk's Wealth Climbs $33.5B Overnight on Stellar Earnings

Word on the StreetThursday, Oct 24, 2024 6:00 pm ET

1min read

Recent developments have seen a significant surge in Tesla's stock, leading to a remarkable increase in Elon Musk's wealth by $33.5 billion overnight. This financial ascent stems from the optimism around Tesla's latest quarterly earnings report, which exceeded market expectations, bolstering investor confidence.

By 11:30 AM Eastern Time, Tesla's stock had skyrocketed more than 19%, sustaining strong growth in after-hours trading. This positive market response followed the company's third-quarter announcement detailing a substantial profit increase and significant cash generation not seen in the past eight quarters. Investors were heartened by Musk's optimistic projection of a 30% increase in vehicle deliveries by 2025, promising a reversal of the 2% year-on-year decline witnessed in the first three quarters of this year.

Despite some analysts' polarized reactions to Tesla's earnings call, the stock's performance marked one of its best days since March 2021. Criticism had emerged over the call's rally-like atmosphere, as it appeared to sidestep certain inquiries from analysts. Nonetheless, the market rally added around $117 billion to Tesla's market valuation, flipping its year-to-date performance from a 14% drop to a near 10% rise.

Elon Musk has announced plans for more affordable Tesla models by the first half of 2025. Additionally, the company aims for a significant surge in car production and advancements in autonomous driving technology. Tesla's commitment to innovation and cost reduction could potentially lead to significant market shifts.

Overall, while some caution remains regarding regulatory challenges and economic conditions, Tesla's strategic moves and technological advancements continue to position it as a formidable player in the electric vehicle market, reflected in its robust financial gains and investor sentiment.

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