Tesla's Market Value Rockets Up After Record Profits and Future Growth Promises

In an impressive turn of events that has caught the attention of the automotive world, Tesla Inc. saw an astronomical increase in market value, adding $80 billion following the revelation of its striking quarterly profits. This leap marks the company's most substantial profit gain in over a year, thanks in part to the robust sales of its attention-grabbing Cybertruck and a healthy contribution from regulatory tax credits.

Tesla's CEO, Elon Musk's penchant for setting high bars seems unrelenting as he embarked on an extensive monologue during Wednesday's earnings call. Musk painted a bright future for the EV giant, promising a delivery growth of 20-30% in 2025, thus laying down the foundation to make Tesla the most valuable company globally. Adding to the intrigue, Musk plans to venture into the ridesharing sphere in Texas and California, which however remains contingent on regulatory nod. This announcement alone sent Tesla's shares soaring by 12%, while simultaneously casting a shadow on the stocks of ridesharing moguls Uber Technologies Inc. and Lyft Inc.

Shattering not only expectations but also previous performance, Tesla's Cybertruck now profits, complementing their energy-storage business's success. Gene Munster of Deepwater Asset Management encapsulated the sentiment, stating that both immediate and long-term investors found their silver lining in the company's recent unveilings.

It's not just about deliveries and sales; Tesla is also pushing the envelope with its autonomous vehicle ambitions, the Cybercab, anticipated to hit volume production by 2026 with at least 2 million units envisioned – possibly doubling that figure. In contradiction to some investors' hopes, Musk clarified that Tesla is not planning to introduce an EV competing with mass-market autos like the Toyota Corolla anytime soon but instead will focus on the Cybercab, and pronounced all Tesla's cars ready for autonomous operations.

Musk's comments did not restrict themselves to the realms of Tesla's operations. Sharing his thoughts on a potential role in a prospective Trump administration, Musk hinted at a focus on expediting federal approval for autonomous vehicles—a sharp pivot from the patchwork of state regulations that currently dictate the market.

Tesla faced a challenging first half of the year but now projects a "slight growth" in vehicle deliveries for the full year. This optimistic viewpoint is bolstered by the increased production of the Cybertruck and deals a potential blow to the 14% decline that Tesla's stock experienced up until the close on Wednesday.

Continuing its streak, Tesla reported an adjusted earnings of 72 cents per share for the third quarter, surpassing analyst expectations and marking the end of a yearlong series of missed targets. The automaker reported an automotive gross margin of 17.1%, excluding regulatory credits, trumping analyst estimates once more.

But the future holds its own set of challenges, as Garrett Nelson from CFRA Research underscores the potential difficulty for Tesla in maintaining its multiple climbs to profitability. Tesla's energy business played a significant role, with deployments already outpacing the entirety of last year, including 6.9 gigawatt-hours of storage in the third quarter. Yet, it's not just about energy storage, as Tesla is also expanding its Supercharger network after an extensive layoff earlier in the year.

Looking further ahead, Tesla boasts a commitment to full autonomy on its current roster entering the realm of future possibilities. Musk playfully hinted at the concept of flying cars when probed about the delayed Roadster, implying Tesla might have more than just roadbound aspirations.