Tesla’s earnings for the latest quarter missed Wall Street’s expectations, but CEO Elon Musk’s optimistic comments during the earnings call helped drive the stock price up nearly 3%. Musk predicted that Tesla’s market value could soar to $15 trillion within five years, primarily driven by the company’s next big growth driver, the robotaxi.
On Thursday, Tesla shares rose 2.87%, closing at $400.28 on the New York Stock Exchange. This marked the first time the stock has broken the $400 mark since January 3. At one point, the stock surged as much as 5% during the session.
The previous day, Tesla reported disappointing earnings results shortly after the market closed.
The electric vehicle maker posted quarterly revenue of $25.7 billion, below analysts’ estimates of $27.2 billion. Earnings per share were $0.73, below the forecast of $0.76.
The news initially sent Tesla’s stock down by about 5% in after-hours trading.
However, about an hour later, the tide turned, and the stock rebounded by 5%. This reversal followed Musk’s surprising announcement during the earnings call that Tesla’s robotaxi could be launched by the end of this year.
Musk projected that the robotaxi rollout could happen by year-end, and mass production could start in 2026, pending regulatory approval.
He boldly stated that Tesla’s market capitalization could reach $15 trillion if the robotaxi succeeds within the next five years. For context, he noted that Tesla’s current market cap is $1.285 trillion.
Musk’s relatively detailed timeline for the robo-taxi, seen as a key growth driver for Tesla, appears to have fueled the sharp rebound in the company’s stock during after-hours trading.
The momentum carried into Thursday’s regular trading session, with Tesla’s stock maintaining its upward trajectory and closing nearly 3% higher.