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Tesla (TSLA) shares surge after the electric vehicle (EV) giant reported better-than-expected earnings and commented on the timeline for its highly anticipated affordable vehicle. Yahoo Finance’s Auto Reporter Pras Subramanian joins Catalysts Hosts Seana Smith and Madison Mills to break down what investors need to know about the results.
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
This post was written by Naomi Buchanan.
we can't have you on and not talk to you about Tesla, right? We got those earnings over the last 24 hours here. The company is on track to add as much as $80 billion to its market cap. What do you make of the bullishness surrounding this earnings print, and how do you think Tesla can continue that heading into next year?
Look, there was, it was, in my opinion, a news heavy earnings release and also call, conference call there with investors, a lot to go through, right? So obviously profit beat here, very nice improving margins, people very happy about that. But also Tesla said they had possibly for a slight growth in volume this year, which means a big 4Q is coming. And then also Elon said in the call he sees 20 to 30% possible volume growth next year. So I think a lot of people grabbed onto that as a very kind of positive thing. They talked about the cheaper EV, right? Now, they say it's coming, and it's not going to be the $25,000 car people think it is. That's he also said that's the cyber cap. This car will be a cheaper EV, maybe it's going to be 30 or 35, they didn't say, but that's what we're expecting to see coming cheaper than the Model 3. Also, they said they're testing robo taxi ride hailing in San Francisco, which is kind of a surprise. It's actually happening. Tesla employees are doing the ride hailing right now, and there's a safety driver driving. Now, this is the thing, there's no video evidence, there's no documentation, there's no pictures of this. So I kind of we want to see that actually in action before we can actually say this is happening. Finally, they said the energy storage business was doing quite well. It's growing super high margins, and it's going to double next year as their expectations. So, I think there's a lot of little elements here that are really driving the stock here today up a lot right now.
