Tesla's Surge: Musk's Bold Vision Sparks Investor Enthusiasm
Tesla shares climbed nearly 22% after CEO Elon Musk forecasted 20%-30% sales growth for the next year and announced plans for a more affordable vehicle by 2025. Despite concerns over Musk's focus on non-core projects, the third-quarter financials showed improved margins, partly due to the Full Self Driving software.
Tesla experienced its largest single-day stock surge in over a decade, gaining nearly 22%, as CEO Elon Musk projected robust sales growth for the coming year. He reassured investors with plans to launch a budget vehicle by 2025 and reported improved third-quarter margins boosted by cost-cutting efforts.
The stock peaked at a session high of $262.2, adding approximately $150 billion to Tesla's market value, erasing previous losses attributed to concerns about Musk's commitments to new ventures, such as robotaxis. Ed Egilinsky, managing director at Direxion, suggested the rally came as a relief following better-than-expected earnings results.
Despite Musk's pivot towards artificial intelligence and robotics, including ambitious plans for autonomous vehicles, some investors are cautious. The company's shares, trading at high P/E multiples, reflect both optimism and skepticism about Tesla's future, with the focus on core competencies remaining a central debate.
(With inputs from agencies.)
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