Shares of Tesla ( TSLA ) rose Thursday after mixed third-quarter earnings results after the bell on Wednesday.

Investors cheered the adjusted earnings per share and higher gross margins, along with news that Tesla’s cheaper electric car is on track for production next year. CEO Elon Musk also said during an earnings call that Tesla’s volume growth could be 20%-30% next year.

Shares of Tesla rose 18% in afternoon trading, which would add tens of billions of dollars to the company’s market value.

Tesla reported revenue of $25.18 billion, which was lower than the expected $25.4 billion according to the Bloomberg consensus, but higher than the $25.05 billion it reported in the second quarter and also higher than the $23.4 billion that Tesla reported a year ago. Tesla posted adjusted earnings per share of $0.72 versus $0.60 expected, on adjusted net income of $2.5 billion and free cash flow of $2.9 billion.

The closely watched gross margin figure came in at 19.8%, much higher than the expected 16.8%.

“We delivered strong results in the third quarter with growth in vehicle deliveries both sequentially and year-over-year, resulting in record volumes in the third quarter,” the company said in its earnings statement. “Preparations are still underway for our range of new vehicles – including more affordable models – which we will launch in the first half of 2025.”

Earlier this month, Tesla announced third-quarter deliveries that slightly exceeded expectations, sending shares lower.

Tesla said it delivered 462,890 vehicles in the third quarter, up 6.4% quarter-over-quarter, to mark the first quarter of delivery growth this year. The figures also came in ahead of the 435,059 electric vehicles the company delivered last year. But Wall Street had expected Tesla to get closer to 463,897, according to Bloomberg.

“The revamped Model 3 ramp continued successfully in the third quarter, with higher overall production and lower cost of goods sold quarter-over-quarter. Cybertruck production increased sequentially and achieved a positive gross margin for the first time,” Tesla said in its report.

Tesla said it expects vehicle deliveries to achieve “slight growth” in 2024. CEO Elon Musk added during the conference call that 20% to 30% growth is possible next year, although he called this a “best bet.”

Ahead of Tesla’s third-quarter unveiling, shares fell about 11% since Tesla unveiled its robotaxi, called the Cybercab, at its flashy “We, Robot” event at the Warner Bros. studio lot in Burbank, California, on October 10.

Investors and analysts wanted more details about Tesla’s “We, Robot” event at the Cybercab itself and detailed testing plans, along with questions about the development of Tesla’s sub-$30,000 EV, called the Model 2.

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During the conference call, Musk said the Cybercab would reach volume production, not just start production, by 2026, and that the company is aiming for 2 million Tesla Cybercabs per year.

Tesla and Musk added that the company remains on track to produce new vehicles, including likely a cheaper electric car, in the first half of next year.

Musk also said the company is testing calling robotaxis and operating them in the San Francisco area for employees, with safety drivers at the wheel.

Tesla reported that its power generation and storage business achieved a record gross margin of 30.5% in the third quarter and that it expects business to more than double year over year by 2024.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him X and on Instagram.

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