2024-10-25 00:10:03
Topline
The world’s richest person got much richer Thursday as Tesla CEO Elon Musk enjoyed a major rally for Tesla stock after the electric vehicle company’s latest earnings report encouraged Wall Street.
Tesla CEO Elon Musk, center, is more than $50 billion richer than anybody else.
Key Facts
Tesla’s share price spiked more than 20% by midafternoonThursday, holding the massive off hours trading surge.
That came as investors reacted positively to the big third-quarter profit beat, the most cash generation in eight quarters and several encouraging tidbits shared by Musk on the accompanying analyst conference call, such as a prediction for up to 30% vehicle delivery growth in 2025, reversing this year’s 2% year-over-year delivery decline through the first three quarters.
The earnings report “reminds us growing the auto business profitably remains a high priority for Tesla,” wrote Morgan Stanley analyst Adam Jonas, alluding to prior concerns about Tesla’s shrinking profit margins as it emphasizes self-driving car initiatives.
Forbes Valuation
The rally added $24 billion to the fortune of Tesla’s largest shareholder Musk, whose lead as the wealthiest person alive grew to more than $55 billion, according to our calculations.
Surprising Fact
Thursday is on pace to be Tesla stock’s best day since May 9, 2013.
Chief Critic
Despite the overwhelmingly positive stock reaction, this wouldn’t be a Tesla event if it wasn’t polarizing. Bernstein analyst Toni Sacconaghi slammed Wednesday’s earnings call as “more akin to a pep rally” than a typical meeting, noting the company took an unusually light two questions from sell-side analysts covering the stock.
Big Number
$140 billion. That’s about how much market capitalization Tesla added Thursday. The rally turned the stock’s year-to-date performance from a 14% loss through Wednesday to an almost% gain.
Tangent
Musk reportedly received a letter from the Justice Department warning his pro-Donald Trump political action committee may be breaking federal law by awarding $1 million to certain swing state voters, as Musk becomes one of the biggest political donors this election cycle with his backing of the GOP candidate Trump.
