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Tesla Earnings: Stock Rises After Company Offers Upbeat Outlook

Tesla Earnings: Stock Rises After Company Offers Upbeat Outlook

Tesla executives seemed to hit just the right note on Wednesday, with the stock posting a 12% after-hours gain as the conference call ended.

Only two analysts had the opportunity to ask questions, with most of the conversation focused on pre-submitted questions from Tesla shareholders.

Chief Executive Elon Musk called for vehicle sales to grow by 20% to 30% in 2025 and also reiterated plans for a lower-cost electric vehicle by the first half of next year. He also promised that by next year he would have robot taxis in Texas, California and perhaps other states, as well as a “spectacular” roadster.

Tesla shares have lost about 10% since investor disappointment on Robotaxi Day on October 10, which many felt was lacking in details.

The stock is expected to trade significantly higher on Thursday “based on these results and earnings announcements,” Tom Narayan of RBC Capital Markets said in a note.

The 12% increase was the biggest profit gain for Tesla since a 12.06% rise after the electric vehicle maker reported its first-quarter 2024 earnings.

If the gains continue, Tesla would hit its highest close since Robotaxi Day, when it closed at $238.77, ending a five-day losing streak.

The stock has fallen nearly 9% this month, which would be its worst since March, when it fell 13%. Shares are down 4% this year, on pace for their worst year since 2022, when they fell 65%.