Tesla stock rises as EV maker ‘accelerates’ launch of affordable cars

Shares of Tesla ( TSLA ) gained 12% on Wednesday, its biggest one-day gain of 2024, after the company said it would accelerate the launch of affordable cars, contradicting reports earlier this month that the company would scrap these plans.

“We have updated our future lineup of vehicles to accelerate the launch of new models before our production start in the second half of 2025,” Tesla. it said in its first quarter shareholder release late tuesday

On the company’s earnings call, CEO Elon Musk said the timelines for new cars could be as early as 2025 if not later this year. Tesla declined to say when the affordable EV will debut, though Musk said the company would talk more about the vehicles on August 8, the day the robotaxi will be unveiled.

“These new vehicles, including the most affordable, will use next-generation platform components as well as components from our current platforms, and will be able to be produced using the same manufacturing methods as our current vehicle lineup,” Tesla said. in release.

Despite reporting a loss in revenue and earnings, investors cheered a much-needed update on the EV maker’s current and future prospects. Tesla stock has still lost 34% so far this year.

Tesla reported first-quarter adjusted earnings per share of $0.45, below estimates of $0.52, on revenue of $21.30 billion, which missed forecasts of $22.3 billion, according to Bloomberg data. Revenue fell 9% from a year ago, Tesla’s first decline in four years.

Tesla reported a profit of $1.2 billion in the first quarter and $1.5 billion in adjusted net income. Both numbers were not forecast and were down more than 50% from a year ago. In terms of delivery guidance, Tesla said it still sees “low volume,” echoing what the company said in its Q4 earnings report.

In its shareholder letter, Tesla also showed preview images of the self-driving feature on its app that shows how the Tesla robot might work.

Prior to Tesla’s Q1 report, shares had been hit hard this year after the company reported disappointing Q4 results, issued weak and non-specific guidance for 2024, missed Q1 shipments, and did not deny reports of a $30,000 loss. amount of EV.

The revenue drop and profit slide follow a weaker-than-expected sales quarter for Tesla.

In Q1, Tesla reported 386,810 international shipments, below estimates of 449,080, and delivered 433,371 vehicles, also below estimates of 452,976. Tesla noted in its first quarter report that Cybertruck production hit 1000 units per week in April.

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The difference of about 46,500 cars produced versus sold led to concerns that demand for Tesla cars will decrease worldwide, which in turn has caused a round after the price cut. On Monday, Tesla cut car prices in the US and China, leading to weaker shares during the day.

However, Tesla confirmed that the long-awaited next-generation platform would underpin a $30,000 sub-EV — called the Model 2. That’s a big deal for investors, many of whom see the low-cost EV as Tesla’s sound play.

Tesla said upcoming cars, including affordable models, will use next-generation platform components alongside existing platforms, allowing them to be built on the same assembly lines as current cars. A “purpose-built robot,” on the other hand, will use the revolutionary “unboxed” production line to be made, Tesla said.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him Twitter and continue Instagram.

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