Elon Musk Had a Lot to Say on Yesterday’s Conference Call. Here Are Some Key Moments.

After Tesla (TSLA) reported third-quarter earnings that beat analysts’ expectations, CEO Elon Musk updated investors on the company’s growing profitability, ambitions for 2025, and more. Investors liked what they heard last night, with the EV maker’s stock up nearly 20% in Thursday trading, in positive territory for the year.

Tesla Grows Profits In a ‘Very Challenging Automotive Environment’

Tesla’s net income for the third quarter grew 17% year-over-year to $2.17 billion, as its gross margin rose to 19.8% from 17.9%. Both measures topped analysts’ estimates compiled by Visible Alpha.

The gains came “despite a very challenging automotive environment,” Musk said on the electric vehicle maker’s conference call with analysts Wednesday.

Tesla executives attributed the company’s margin growth in part to lower raw material and freight costs. Tesla also said its Cybertruck became profitable for the first time in the quarter.

Lower-Cost Vehicle Plans Still ‘On Track’ for 2025

During the call, Musk reassured investors Tesla is still “on track” to begin production of vehicle that would cost under $30,000 next year, though other comments from Musk suggested it may not come in the form many investors anticipated.

In response to questions about a $25,000, non-robotaxi vehicle, Musk said a regular $25,000 model would be “pointless,” and emphasized the company’s focus on autonomous driving, suggesting it would be a robotaxi. Musk said the company expects to receive regulatory approval to roll out its autonomous driving capabilities in Texas and California as soon as next year.

Musk added Tesla is looking to expand to other states after Texas and California, and advocated for a federal approval process to speed up expansion.

Targeting 20% to 30% Vehicle Growth

Musk suggested that with the rollout of Tesla’s lower-cost vehicle and autonomous driving next year, the company could target 20% to 30% vehicle growth in 2025.

Tesla also plans to ramp up production of its Cybercab, aiming to reach volume production in 2026 at a rate of at least 2 million units annually.

At Tesla’s “We, Robot” event earlier this month, Musk said the Cybercab will enable “individualized mass transit,” and will become available for purchase for under $30,000.

Energy Storage Business ‘Growing Like Wildfire’

Revenue from the company’s energy generation and storage business jumped 52% year-over-year to $2.38 billion and saw a record gross margin. The business is “growing like wildfire,” Musk said on the call,.

Tesla’s Megafactory in Lathrop, Calif., recently reached a production rate of 200 Megapack batteries per week, or a run rate of 40 gigawatt hours per year, Musk said on the call. Musk said the goal is to hit multiple terawatt hours per year.

Roadster May Take a Back Seat

Musk during Wednesday’s call said the much-anticipated Tesla Roadster, a four-seater sports car with a $50,000 reservation charge, “has to come behind … things that have a more serious impact on the good of the world.”

Musk didn’t specifically mention a change to the 2025 production target he offered in July, though some may interpret his comments that way. It was slated for a 2020 release when it was announced in 2017. 

“Thank you to all our long-suffering Tesla Roadster deposit holders,” Musk said. “And we are actually finally making progress on that. And we’re close to finalizing the design on that.”

‘Tesla Will Become the Most Valuable Company in the World and Probably by a Long Shot’

Musk said he believes that with the company’s focus on autonomous driving and AI, “Tesla will become the most valuable company in the world and probably by a long shot.” The company is currently in 10th place, with a market capitalization of around $810 billion.

“Tesla is focused on building the future of energy, transport, robotics and AI. And this is a time when others are just focused on managing around near-term trends. We think what we’re doing is the right approach,” Musk said, arguing Tesla’s work in these areas will generate more value down the road.

—David Marino-Nachison contributed reporting to this article.