Tesla (TSLA) stock notched its best day in more than a decade on Thursday after the electric vehicle maker topped earnings estimates and promised a lower-cost model would begin production early next year.

Tesla shares soared 22% Thursday, their biggest one-day gain since May 2013 when the company reported $500 million in quarterly sales for the first time. In the most recent quarter, vehicle sales exceeded $20 billion.

Tesla's surging stock lifted the S&P 500's Automobiles Industry Index, which advanced more than 18% Thursday. Shares of other automakers were mixed, with General Motors (GM) slipping and Ford (F) advancing.

Uber (UBER) shares slid nearly 2%; its stock surged to a record high earlier this month when Tesla's robotaxi rollout failed to convince investors it posed a threat to the ride-sharing giant.

Why Tesla Stock Soared Thursday

The company on Wednesday night reported automotive profit margins improved for the first time since early 2022. The profitability of the company’s core car business has been under pressure for years amid a price war in China and sluggish U.S. demand.

CEO Elon Musk assured analysts on the company’s earnings call that “plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025.”

Musk has long said a lower-cost model is on the way, but his enthusiasm this year for robotaxis and AI has raised doubts on Wall Street about his commitment to that plan.

Musk outlined other ambitious goals for Tesla on the call, including making it the world’s most valuable company “by a long shot” and achieving “vehicle growth” of 20% to 30% next year. Tesla’s total car sales are down 2% so far this year compared with 2023.

Update—Oct. 24, 2024: This story was updated after markets closed on Thursday to reflect Tesla's closing share price.

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