the stocks soar and Musk releases his growth forecasts

Tesla (TSLA) shares soar by +22% and the CEO, Elon Musk, has announced his forecasts: a 20-30% increase in vehicle sales by 2025. Tesla’s Q3 2024 results have driven Wall Street investors to add nearly 150 billion dollars to the company’s market capitalization. 

Tesla: TSLA shares soar by +22% and Musk releases his growth forecast for the company for 2025

Last Thursday, Tesla (TSLA) shares jumped by +22%, the best day in the last 11 years, with CEO Elon Musk who released some of his comments. 

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In practice, Musk reportedly shared the plans for Tesla vehicle sales growth, announcing that he expects an increase of 20-30% by 2025. Here are his words reported:

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“The CEO Elon Musk stated during the call that his “best guess” is that “vehicle growth” will reach 20-30% next year, citing “low-cost vehicles” and “the advent of autonomy.” Analysts surveyed by FactSet were expecting a delivery growth of about 15% for 2025.”

Basically, this optimism from Musk stems from the data related to the third quarter of Tesla which recorded solid revenues and growth, in addition to the sales of its electric vehicles. In Q3 2024, Tesla recorded earnings per share of 0.72 dollars.

This result was above the estimate of 0.60 dollars of the consensus and up by 9% compared to 2023. Additionally, it recorded a revenue of 25.18 billion dollars, up by 8% compared to a year ago.

Here, with this data in hand, plus the words of the famous Musk, the investors of Wall Street have taken action, adding a whopping 150 billion dollars to Tesla’s market cap. 

Tesla and the increase of TSLA shares: the criticisms of Musk’s forecasts 

Obviously, while Musk rides the wave of good Q3 2024 results and announces his best growth estimates for next year, other analysts do not quite agree with him. 

In fact, to tell the truth, it seems that industry experts were quite shocked by the numbers presented by Musk on the future of Tesla sales. 

For example, the International Energy Agency estimates that global sales of electric vehicles will grow by about 23%, reaching 17 million this year, compared to last year’s 35% increase and growth of over 50% in 2021.

This lack of sales contrasts with Musk’s desire to increase the development and sales of electric vehicles.

Sam Fiorani, vice president of the research company AutoForecast Solutions, commented as follows:

“There is almost no analyst in the world who agrees with a 20% growth of the company next year. Tesla, apart from this quarter, has seen a slowdown in demand for its products. And one quarter is not a trend.”

The latest news of the company and Bitcoin

Recently, there has also been talk about Tesla and the 11,500 Bitcoin (BTC) in its wallets. The issue raised doubts that Tesla had moved all its BTC and intended to sell them. 

Indeed, a sudden sale of 11,500 BTC would not go unnoticed, as it would have negative effects on the price of BTC both for the liquidation and for Musk’s pro-crypto public image. 

In this regard, precisely thanks to the publication of its economic/financial data for Q3 2024, up to the end of September, Tesla has never sold its BTC.