Tesla stock price is back on the rise: 3 reason why Elon Musk’s EV maker is enjoying a rally today

Shares in Telsa (NASDAQ: TSLA) are surging this morning after the company announced its third-quarter earnings yesterday after the close of the bell. In premarket trading on Thursday, TSLA stock is currently up over 13% to $242.41. Here are the biggest likely reasons for the stock’s surge.

Musks’s growth comments

By far the thing that likely got investors most excited about Tesla stock are comments from CEO Elon Musk, who said that “vehicle growth” will be between 20% and 30% in 2025, in part due to an anticipated lower-cost vehicle. As CNBC notes, analysts were expecting delivery of Tesla vehicles to only increase about 15% next year.

Of course, one caveat is that Musk said his forecast was a “best guess”—so as always, nothing is set in stone. However, forecasting growth that could be as high as double the expectations of most analysts is one way to get investors excited about the stock again.

The Cybertruck becomes profitable

Another bit of good news to investors’ ears was the announcement that Tesla’s beleaguered Cybertruck has finally turned a notable corner. In a shareholder deck, Tesla said that the electric truck’s “production increased sequentially and achieved a positive gross margin for the first time.”

It also announced that the Cybertruck was now the third best-selling electric vehicle in the United States for the quarter, trailing only behind Tela’s other EVs, the Model Y and Model 3.

Emissions regulatory credits boost profits

Finally, Tesla reported regulatory credit revenues of $739 million, which helped bolster the company’s profit margins. As CNBC notes, vehicle makers are required to obtain a certain number of regulatory credits each year in order to comply with emissions standards. If they can’t obtain these credits organically, they can purchase unused credits from another company.

Tesla, being an electric vehicle manufacturer, is usually flush with these credits—and selling them off to other car manufacturers in need this quarter helped the company generate an additional nearly three-quarters of a billion dollars in revenues.

Tesla’s Q3 and stock price

The above elements helped Tesla have a better-than-expected quarter. It generated $25.18 billion in revenue for the period—an 8% increase from the same quarter a year earlier.

But most importantly from the stock’s perspective, the quarterly earnings seem to have put some fire back into TSLA shares.

Before yesterday’s earnings, TSLA shares were trading down 14% year-to-date. (The stock slumped earlier this month after Musk’s much-hyped robotaxi event failed to impress.) As of premarket trading this morning, TSLA shares have now managed to recoup much of those losses.