Tesla's stock soars after strong earnings report.

• Tesla stock up ~14% on pre-market
   
• Musk predicts 20%-30% rise in vehicle sales
   
• Profit margin hits 17.05%, exceeding forecasts
   
• 1.29M vehicles delivered, aiming for record growth

Following the better-than-expected earnings report and the positive outlook, building on a modest growth target for the current year, resulted in a ~14% increase in Tesla's stock on the pre-market trading.

Prior to the event (according to Bloomberg), the 1-day implied move for Tesla stock was estimated around 6.5% on the day of the earnings release.

On October 23, Tesla's CEO Elon Musk forecasted a 20% – 30% rise in vehicle sales for the upcoming year, easing investor worries regarding the company's profitability and the timeline for its robotaxi launch.
 

Musk highlighted Tesla's profitability in a tough automotive market, pointing out that no other electric vehicle (EV) manufacturer is currently making a profit.

Despite a tepid reaction to the recent robotaxi reveal, Musk shared plans to roll out driverless vehicles for paid rides next year, pending regulatory approvals.

The company's profit margin from vehicle sales in the third quarter climbed to 17.05%, exceeding Wall Street's predictions, although maintaining this margin may be challenging in the fourth quarter.
 

Tesla reported a reduction in production costs and a significant decline in raw material prices, which could further boost profitability.

With 1.29 million vehicles delivered in the first nine months of the year, Tesla is striving to exceed last year's record.

Overall, the company remains committed to expanding its vehicle offerings and investing in artificial intelligence and production capabilities.