Apr 24, 2024
Tesla's stock price skyrocketed over 11% on Wednesday, its biggest one-day jump in more than two years. This surge came after the company released its earnings report on Tuesday afternoon.
The positive market reaction boosted Elon Musk's wealth by a cool $10 billion, according to Forbes, propelling him to become the world's third-richest person.
This development comes despite Tesla's profits taking a nosedive, dropping nearly 50% year-over-year.
However, investors seemed to be more excited about the company's future plans, which included the potential launch of more affordable electric vehicles and advancements in their self-driving taxi project.
These promising prospects fueled investor optimism and sent the stock price soaring.
“If somebody doesn’t believe Tesla’s going to solve autonomy, I think they should not be an investor in the company,” Tesla CEO Musk said on Tuesday’s earnings call, reflecting the high-stakes—and maybe not high-probability — bet Tesla is placing on autonomous driving and its autonomous taxi network.
“If you value Tesla just like an auto company…fundamentally, it’s just the wrong framework,” Musk added, reflecting the stock’s rally seemingly at odds with Tesla’s actual first-quarter results.
