Tesla (NASDAQ: TSLA) updated investors last night with its third-quarter report, and as a result the stock is soaring. There was a lot of good news in the report, as well as CEO Elon Musk’s comments on the quarterly conference call.

As a result, the stock was trading 16.8% higher as of 10:40 a.m. ET. The big move has caused Tesla shares to end up in the black again this year.

The list of issues facing investors today starts with profitability and cash. Tesla exceeded analyst expectations with adjusted earnings per share of $0.72. The average estimate was a profit of $0.58. That was achieved because the company’s electric car sales were more profitable than many expected. Tesla reported an operating profit margin of 10.8%. That is the highest level since the first quarter of 2023. Comparable to 5.5% and 6.3% in the first and second quarters of 2024, respectively.

Tesla also said it generated robust free cash flow of $2.7 billion in the quarter. The company is using that excess cash to fund its plans to introduce fully self-driving cars, improved software and possibly a network of robotaxis. These future plans are a big part of what investors are looking at when valuing Tesla shares at their lofty levels. The price-to-earnings ratio of Tesla shares is almost 70, almost triple that of the overall market.

The reaction in the stock was also due to what Musk said on the investor conference call. He projects car sales growth of 20 to 30% by 2025, which would amount to about 2.3 million deliveries in 2025. Perhaps even more important was his comment that Tesla is “on track to deliver our affordable models from the first half of 2025.” Lower-priced cars that appeal to a broader group of potential electric vehicle (EV) buyers is something investors have been clamoring for.

Elsewhere, Tesla is also seeing strong growth in its energy business, with storage deployments increasing 75% year over year. That combination of results and expectations for 2025 is causing the stock to rise enormously today.

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