Tesla shares on Wall Street soared by 19%: reasons for the rise in the markets of Elon Musk’s company

Actions Tesla Inc. grew by 19% in Wall Streetwhich increased the company’s value and increased its market capitalization by more than $100 billion. This jump was not only beneficial for the company Elon Muskbut also had a positive impact on the most important stock indices such as S&P 500 Index And Nasdaq.

The market reaction came after the announcement of strong financial results from Tesla, which reported higher-than-expected profits in the third quarter of the year. This was also accompanied by an aggressive growth forecast for 2025, causing a stir among investors.

Tesla’s influence has extended beyond its own actions to help the auto industry. discretionary consumption and fast-growing technology companies. Companies like Nvidia And Meta platforms They also saw their shares rise, riding a wave of general optimism in the market.

However, not all industries shared this enthusiasm. While Tesla and other tech companies lifted the Nasdaq and S&P 500, Dow Jones fell due to poor results IBM And Boeing. Both companies have faced specific challenges that have weighed on their shares, limiting the positive impact on the overall market.

Tesla’s rise was not driven by any one factor, but rather by a combination of events and forecasts that boosted investor confidence. Below are the main reasons that led to this significant increase:

• Strong sales growth is forecast for 2025.: Elon Musk, Tesla CEO, predicted sales growth from 20% to 30% for next year. The announcement surprised the market, raising high expectations for the company’s future performance.
  
• Stable quarterly incomeTesla beat analysts’ expectations by reporting better-than-expected third-quarter 2024 earnings. This gave a strong impetus to the stock’s growth in the short term.
  
• First profit made from Cybertruck: Expected model Cybertruck ultimately generated positive earnings, making a significant contribution to the company’s earnings for the first time since its launch.
  
• Reduction of material costs: Fall production costs helped Tesla improve profitability, which was seen as a positive sign by investors.
  
• Selling regulatory credits:Tesla generated $739 million revenue by selling regulatory credits to other automakers that need to comply with emissions regulations. These loans were an important resource for increasing the company’s profitability.
  
• Expanding your energy business:Tesla has diversified its business, achieving significant growth in the area energy storage and batteries, which provided an additional source of income and financial stability.
  
• Optimism about autonomous driving technology: Elon Musk reaffirmed his commitment to technology development autonomous vehiclespredicting launch Cybertaxi robotaxi by 2026. This approach has generated enthusiasm among investors who see the potential of a huge new market.
  

Together, these factors not only explain Tesla’s 19% rise, but also renewed interest in the company’s growth expectations in the coming years.

Tesla’s strong performance caused a domino effect in other sectors of the market, especially in technology and consumer discretionary stocks. He consumer discretionary sector belonging S&P 500 Index grew by 2.4%, mainly thanks to Tesla and companies such as Nvidia And Meta platforms They also benefited, with growth of 0.8% and 0.6% respectively.

Against, materials sector was one of the hardest hit with a loss of 1%. Companies like Newmontmajor gold producer reported a decline due to concerns over rising costs and low production at its Nevada mine.

Meanwhile, Dow Jones did not have the same momentum as the Nasdaq and S&P 500 due to declines in companies such as IBM And Boeing. IBM fell 7% after missing third-quarter earnings expectations, while Boeing fell by 1.9% due to labor conflicts at the plant. The strike by Boeing workers continued for more than five weeks, creating uncertainty about the company’s future operations.

Other industrial giants such as Honeywell They also took a hit, with their shares falling 3.8% after announcing their full-year sales would fall short of expected estimates.

Based on Tesla’s statements, Tesla’s future is bright. Elon Muskwhich continues to place big bets on development autonomous vehicles and to expand its product portfolio. Musk announced that Tesla plans to launch robotaxi called Cybertaxi in 2026 with the aim of producing between 2 and 4 million units annually in the future.

In addition, Tesla has improved its technology. Full Autonomous Driving (FSD)with new features that allow vehicles to perform more complex tasks such as automatic parking or calling vehicles in parking lots. These technological advances have been well received by investors, who see Tesla as a company leading the future of autonomous driving.