Finance

Tesla stock jumps after record-breaking Q3 earnings, adding $22 billion in market value

elon musk
Tesla CEO Elon Musk.

AP Photo/Jae C. Hong

  • Tesla’s strong third-quarter earnings sent its stock price up as much as 5.5% on Thursday.
  • Elon Musk’s electric-car maker delivered nearly 140,000 vehicles last quarter, fueling record operating income of $809 million and free cash flow of $1.4 billion.
  • Tesla’s bosses are aiming to deliver 500,000 vehicles this year, requiring the company to produce about 181,000 cars this quarter — 29% more than their quarterly record.
  • The automaker’s stock price has soared more than fivefold this year, giving the group a bigger market capitalization than Johnson & Johnson, Procter & Gamble, or JPMorgan Chase.
  • Visit Business Insider’s homepage for more stories.

Tesla shares surged as much as 5.5% on Thursday after Elon Musk’s electric-car company posted third-quarter earnings on Wednesday that beat Wall Street’s expectations.

The automaker grew revenue by 39% year-on-year to $8.8 billion, which helped to more than triple its operating income to a record $809 million. It also boosted vehicle deliveries by 44%, to almost 140,000, and generated free cash flow of $1.4 billion, marking fresh highs for the company on both fronts.

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Musk and his team reiterated their target of delivering 500,000 vehicles this year. Hitting that goal will require them to produce roughly 181,000 cars in three months — 29% more than their quarterly record.

Tesla’s stock price has skyrocketed more than 400% this year. The company’s market capitalization has ballooned to north of $400 billion as a result, surpassing Johnson & Johnson ($379 billion), Procter & Gamble ($357 billion), and JPMorgan Chase ($303 billion).

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