Tesla's stock had a stellar week, closing at its highest price in 13 months. On Friday, shares jumped by 3. 4%, ending the day at $269. 19. This uptick came after a massive 22% surge on Thursday, following Tesla's impressive third-quarter earnings report. The company, led by Elon Musk, exceeded analyst predictions for profits, and Musk forecasted a 30% increase in vehicle deliveries by 2025. Over two days, Tesla's market cap ballooned by $157 billion, reaching $843 billion. This rally wasn't just good news for Tesla; it also pushed the tech-heavy Nasdaq Composite index to record highs.

Despite this recent success, Tesla's stock is still about 35% below its all-time high from November 2021. The company's EV business has faced slower growth, with analysts predicting a 2% drop in vehicle deliveries this year. This would be the first time Tesla's growth dips below 35% since 2016. However, there's hope for the EV sector, as Tesla's automotive profit margins hit a six-quarter high in Q3. Much of the optimism around Tesla's stock is tied to its autonomous vehicle and AI initiatives. Musk himself emphasizes the importance of these areas, suggesting that investors should only back Tesla if they believe in the company's autonomous driving capabilities.

Some analysts, like those at UBS, are cautious about this optimism. They value Tesla's core EV and solar energy businesses at just $51 per share, implying that the market is placing over $500 billion worth of value on the company's machine learning prospects. Tesla's high price-to-earnings ratio, currently at 86, indicates that investors are betting heavily on future earnings. This ratio is the highest among the top 15 U. S. companies with a market cap of at least $500 billion.

Tesla Stock Soars, Hits 13-Month Peak

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