Tesla’s shares notched their biggest one-day gain since 2013 after the world’s largest electric vehicle maker reported higher than expected quarterly profit while forecasting “slight growth” in deliveries this year and a big jump in 2025.

The performance marks a turnaround for Tesla, which has endured a few disappointing quarters as concern spread about slowing global demand for electric vehicles. It has also been caught up in the divisive political activism of its chief executive, Elon Musk, and a court battle to restore his $56bn package of share options.

Musk on Wednesday afternoon predicted vehicle sales could increase 20 per cent to 30 per cent next year after cost cuts reduce the prices of existing cars which in turn would spur demand.