Tesla (TSLA) stock soared in after-hours trading on Tuesday after the company announced it would accelerate the launch of more affordable cars, countering reports earlier this month that it would scrap those plans.
“We have updated our future vehicle lineup to accelerate the launch of new models ahead of our previously announced production start in the second half of 2025,” Tesla said in its first-quarter shareholder release. CEO Elon Musk said during an earnings call that the company's new vehicle release schedule could be as early as early 2025, if not later this year. Tesla declined to say when the inexpensive EVs would debut, but Musk said he would talk more about the vehicles on Aug. 8, when the robotaxi is unveiled.
“These new vehicles, including more affordable models, leverage aspects of our current platform as well as our next-generation platform, and will be able to be produced on the same manufacturing lines as our current vehicle lineup,” Tesla said in a statement. ” he said. In the release.
Despite reporting disappointing sales and earnings guidance, investors appear to have welcomed the much-needed update on the EV maker's current and future prospects. Tesla shares rose as much as 11% in after-hours trading.
Tesla reported first-quarter adjusted earnings of $0.45 per share, below expectations of $0.52, and revenue of $21.3 billion, below expectations of $22.3 billion, according to Bloomberg data. Sales fell 9% from a year ago, Tesla's first decline in four years.
Tesla reported operating income of $1.2 billion and adjusted net income of $1.5 billion in the first quarter. Both numbers were lower than expected, with sales down more than 50% year-on-year. Regarding its shipment outlook, Tesla said it still sees “significant production declines,” similar to what the company said in its fourth-quarter earnings call.
In its letter to shareholders, Tesla also showed a preview image of the in-app ride-hailing feature that shows how Tesla's robotaxis will work.
Tesla's first quarter report comes as the company reports disappointing fourth quarter results, releases weak and unspecific 2024 delivery guidance, misses first quarter deliveries and sells under $30,000 The company's failure to refute reports about its demise has hurt its stock price this year. Volume EV.
The decline in sales and profitability came after Tesla's quarterly sales fell short of expectations.
In the first quarter, Tesla reported global deliveries of 386,810 vehicles, well below the estimate of 449,080 vehicles, and production of 433,371 vehicles, also below the estimate of 452,976 vehicles. Tesla said in its first-quarter report that Cybertruck production reached 1,000 units per week in April.
The difference between the number of cars produced and the number of cars sold is about 46,500, leading to concerns about a decline in global demand for Tesla cars, leading to a series of price cuts. Tesla cut the prices of its cars in the U.S. and China on Monday, leading to an intraday drop in its stock price.
Nevertheless, Tesla has confirmed that its long-awaited next-generation platform will underpin a sub-$30,000 mainstream EV called the Model 2. This is a big deal for investors, many of whom see low-cost EVs as a volume play for Tesla.
Tesla said its upcoming vehicles, including more affordable models, could use existing platforms as well as parts of next-generation platforms and be built on the same assembly lines as current vehicles. Meanwhile, Tesla said its “private robotaxis” will be manufactured using an innovative “boxless” production line.
Pras Subramanian is a reporter for Yahoo Finance.you can follow him twitter And even more Instagram.
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