Key Takeaways:

1. Stock Surge: Tesla jumps 20%, the biggest rally in over three years.
2. Earnings Surprise: EPS hit 72 cents, smashing expectations of 58 cents.
3. Musk’s Bold Prediction: Predicts 20-30% vehicle growth for next year.

Tesla shares shot up by nearly 21% on Thursday, marking the company’s best performance in more than three years. The stock rally followed a surprising earnings report and yet another optimistic forecast from CEO Elon Musk—because when isn’t Musk optimistic?

1. Earnings: Not Perfect, but Good Enough. Tesla reported revenue of $25.18 billion, just shy of the $25.37 billion analysts hoped for, but what’s a few million between friends? More impressively, adjusted earnings per share clocked in at 72 cents, far outpacing the expected 58 cents. The takeaway? Sure, they missed on revenue, but when you beat earnings by that much, investors are willing to forgive a little underperformance.

1. Regulatory Credits: The Hidden Boost. Tesla’s margins got a handy $739 million nudge from selling regulatory credits. This is great for short-term profits, but analysts like those at JPMorgan are waving a caution flag, calling it a “potentially unsustainable” revenue source. In other words, enjoy the boost while it lasts, but don’t bet your future on it.

1. Musk’s Big (and Always Bold) Call. Elon Musk wasn’t shy about making bold predictions during the earnings call, as usual. He’s forecasting vehicle growth of 20-30% next year, powered by cheaper models and autonomous tech. For reference, analysts were expecting a much more grounded 15% growth by 2025. But if there’s one thing we know about Musk, it’s that “conservative estimates” aren’t part of his vocabulary.

Tesla’s massive rally on Thursday has wiped out its year-to-date losses, bringing the stock up by 2%. That’s great, but let’s not forget: it still trails the Nasdaq, which has risen a cool 22% this year. The question now is whether Musk’s bold vision for 2025 will hold, or if this is just another Tesla hype cycle in the making.

Either way, Tesla’s ride is never boring.