Third quarter results exceeded expectations

Tesla delivered strong results in the third quarter, with net profit of $2.17 billion and profit per share of 62 cents, exceeding analyst expectations.Gross profit margin increased to 19.8% from 17.9% last year, indicating that the company has made significant progress in controlling costs.Tesla has steadily improved profits despite high inflation and supply chain challenges facing the auto industry.

Optimistic outlook

Tesla expects vehicle deliveries to increase by 20% to 30% in 2025, significantly higher than the market consensus forecast of 10%-12%.This optimistic outlook attracted positive comments from Bank of America, which raised its target price to $265 from $255 and maintained its "Buy" rating.At the same time, JPMorgan Chase is cautious and believes that Tesla's forecast may be too optimistic. This optimism itself carries certain risks. Therefore, JPMorgan Chase only raised Tesla's target price to US$135 and maintained a "low allocation" rating.

New product and technology research and development plan

In terms of products, Tesla plans to launch models worth less than $30,000 in 2025, which will further expand its competitiveness in the low-and mid-price car market.However, Musk emphasized that the car will focus on autonomous driving functions, emphasizing that it will be closer to the concept of a robotic taxi.

Tesla also plans to launch passenger services in Texas and California and seek regulatory approval to accelerate expansion in other states.At the same time, Tesla's Semitruck and Cybercab plans will also be further advanced, and is expected to reach an annual production of 2 million vehicles in 2026.

Energy storage business accelerates expansion

Tesla is not only developing rapidly in the field of electric vehicles, but its energy generation and storage business is also growing strongly, with revenue reaching US$2.38 billion in the third quarter, a 52% year-on-year increase.The business's gross profit hit a new high, showing Tesla's continued improvement in profitability in this field.

Megafactory in Lathrop, California currently has a production capacity of 200 Megapack batteries per week, equivalent to an annual output of 40 gigawatt hours, and its future goal is to reach several terawatt hours.

Focus on autonomous driving and AI technology

Although Tesla's Roadster project continues to be postponed, Musk said the company's resources will be prioritized in technology areas with more global influence, including autonomous driving and AI.He is full of confidence in Tesla's long-term prospects and believes that with the advancement of autonomous driving technology, the company will become "the company with the highest market value in the world" and will be far behind other companies.Musk pointed out that this strategy will generate higher value in the future.

Market reaction is positive, stock prices soar

Tesla's share price soared nearly 20% after the third-quarter earnings report was released, and has rebounded to positive territory year-to-date.Optimism about Tesla's future growth potential drove the stock price rise, showing investors are confident in its performance and future expansion plans.