Tesla to add $100 billion in Mcap; stock jumps 19% after Elon Musk-led EV giant posts 17% rise in Q3 profit

Tesla Inc. shares surged 19 per cent after Elon Musk’s company reported earnings on Thursday.

With the jump in share prices, the automaker will add nearly $115 billion to its market capitalization, reported Reuters.

The company, led by Elon Musk, reported third-quarter profits of $2.2 billion, an increase of 17 per cent from the same quarter previous year. It reported $25.2 billion revenue in the quarter ended on September 30, a 8 per cent increase, reported AFP.

Tesla's strong earnings are attributed to low cost-per-vehicle due to a dip in material costs and freight expenses, it added. Despite the ongoing macroeconomic conditions, the company expects "slight growth" in 2024 deliveries.

The EV maker projects a growth forecast of 30 per cent in car sales next year.

“Something like 20 per cent to 30 per cent growth next year is my best guess,” reports said, quoting Tesla boss Elon Musk.

Tesla had previously announced a six-percent rise in vehicle sales.

The EV giant's shares declined by 14 per cent this year through Wednesday's close and dropped in the weeks since Musk launched self-driving taxi and van prototypes, reported Bloomberg News.

Earlier, Elon Musk revealed Tesla's highly anticipated self-driving taxi at a flashy event, which was not well received by investors. Following the launch, the shares dropped by almost 10 per cent, the biggest intraday decline in over two months.

The product launch lacked details, such as how Tesla will transition from selling advanced driver-assistance features to fully autonomous vehicles.

In the previous quarter, the EV giant's Q2 net income dropped to $1.48 billion from $2.70 billion in the same quarter the previous year with the ongoing price cuts to revive demand and rising expenditure on AI projects

Tesla's share price fell 8 per cent after the Q2 earnings missed profit estimates. The company posted the lowest profit margin in over five years, reported Reuters.