Elon Musk Sued Over Robotaxi AI… Tesla Stock Skyrockets $80 Billion in Response

It seems Elon Musk can brush off lawsuits the same way most of us swipe away low battery warnings—without a second thought. 

Just days after the producers of Blade Runner 2049 filed a copyright lawsuit against Tesla for allegedly using AI-generated imagery from the movie during their robotaxi event, Musk dropped a bombshell of his own. Tesla’s Q3 earnings report was so strong, it added $80 billion to the company’s market value instantly. If you’re keeping score, that’s more than 500 times the budget of Blade Runner 2049 (and no, Ryan Gosling doesn’t come with it).

Let’s start with the Elon drama because, come on, he’s more entertaining than the Golden Bachelor. Alcon Entertainment, the studio behind Blade Runner 2049, filed a lawsuit after Tesla’s We, Robot event earlier this month. They claim that Tesla’s AI-engineered image used during the robotaxi launch was a blatant rip-off of a scene from the movie.

The scene in question? A guy in a trench coat, staring out over a post-apocalyptic wasteland (a vibe Tesla seemingly borrowed without permission). Alcon wasn’t having it and is dragging Musk into court for what they see as AI-fueled copyright infringement.

(Source: CNBC)

Elon, however, didn’t seem too bothered. He even made a joke about loving Blade Runner, just not the "apocalyptic future" part. But what he should really love is how Tesla's Q3 earnings report blew away expectations, overshadowing the lawsuit headlines entirely.

So how exactly does Tesla add $80 billion in market value overnight? By delivering its most profitable quarter in over a year. The company reported $25.18 billion in revenue, beating analyst expectations of $25.05 billion and posting an adjusted EPS of 72 cents, well above the 60 cents predicted by Wall Street. Investors had been wary after Tesla’s rough first half of 2024, but this earnings beat hit harder than a Cybertruck speeding through regulatory credits.

Speaking of which, Tesla’s regulatory credits hit $739 million in Q3 alone, adding a nice boost to the bottom line. And for anyone who’s been waiting for the Cybertruck to stop being the butt of Twitter jokes, guess what? It’s finally turning a profit. Musk also revealed that Tesla’s energy storage business hit a record margin of 30.5%, showing that the company’s growth is in fact more than EVs—Tesla is quietly building an empire in energy solutions, too. But, of course, it wouldn’t be an Elon Musk earnings call without some wildly ambitious plans for the future. Musk went full throttle, laying out Tesla’s roadmap for 2025 and beyond. He’s predicting a 20-30% growth in vehicle deliveries next year and even threw out the possibility of producing up to 2 million of his robotaxis (dubbed the Cybercab) by 2026.

What’s really cooking is Tesla’s push into ridesharing. Musk mentioned plans to launch robotaxi services in Texas and California next year, which sent shares of competitors Uber and Lyft straight to the gutter. The Cybercab, which Musk says will start at around $30,000, aims to disrupt the rideshare market entirely by eliminating the need for drivers.

(Source: The Future Party)

And if that wasn’t enough, Tesla also hinted at launching more affordable EVs in the near future—though Musk threw cold water on the idea of a $25,000 Tesla competing with the Toyota Corolla. In his words, a low-cost Tesla would be "pointless" since all their future cars will have autonomous capabilities. Translation: Why settle for an entry-level EV when you could ride in a self-driving Cybercab?

Despite the Blade Runner lawsuit hanging over Tesla’s head, it’s hard to argue with the company’s momentum. Tesla’s stock soared 12% in post-market trading, effectively erasing a big chunk of the 14% dip it suffered earlier this year. 

Investors are loving the combination of better-than-expected profits and promises of massive growth. Tesla delivered 462,890 vehicles in Q3, up 6.4% from the previous quarter, marking the first quarter of delivery growth this year. With a strong focus on energy storage and new vehicle launches, Tesla is making sure it doesn’t just dominate the EV space, but the entire future of transportation and energy.

(Source: The New Yorker)

And as for that Blade Runner lawsuit? If this is how the market reacts, Elon’s probably hoping for a few more lawsuits to roll in. After all, if every legal battle adds $80 billion to Tesla’s value, he might just start handing out Blade Runner jackets at the next earnings call.

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Stock.News has positions in Tesla.