Tesla gains 4% to extend Q3-powered rally after best single-day gain in a decade; Nasdaq up 1.29% | Stock Market News
Source: Live Mint
Tesla stock continued to rally on Friday as the US markets opened, rising 4.43 per cent. Tesla shares listed on the Nasdaq index recorded an uptrend after the company reported a 17 per cent rise in third-quarter profits.
Tesla shares opened at $257.69 when trading started at 09:30 am EDT. At 09:58 am EDT, they rose to $269.11, marking a 4.43 per cent spike.
Tesla shares are trading 2.72 per cent higher at $267.62 at 12:35 pm EDT on Friday, compared to $260.48 at the previous market close. Nasdaq Composite rose 1.29 per cent to 18,653 points in Friday’s session, compared to 18,415.49 points at the previous market close.
Tesla Results
Mint reported on Thursday that Tesla shares surged 19 per cent after the Elon Musk-led electric vehicle maker announced its third-quarter results. According to Reuters, the company will add nearly $115 billion to its market capitalisation.
The company reported a net income of $2.2 billion, marking a 17 per cent increase from the same period the previous year. Tesla also announced that the company’s revenues increased 8 per cent to $25.2 billion.
Tesla’s gains are attributed to the low cost per vehicle due to a fall in material costs and freight expenses. Despite the ongoing macroeconomic conditions, the company expects “slight growth” in 2024 deliveries, as per an AFP report.
Tesla also projected 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,” said Elon Musk, as per media reports.
Tesla’s third-quarter results showed a turnaround as in the previous quarter, the company’s net income fell to $1.48 billion in the second quarter from $2.70 billion, compared year-on-year. This quarter’s results boosted the value of the stock.
After the results of the previous quarter, Tesla’s shares fell 8 per cent, as the company missed estimates.
