Electric vehicle maker Tesla saw its revenue cut in half in the first quarter of 2024 compared to the same period last year. But despite this, the company’s stock saw a 12% jump on Wednesday thanks to promises of an earlier production of a cheaper EV model.
It was previously reported that Tesla put its plans for an affordable EV on the backburner instead of aiming to produce robotaxis. However, during the first-quarter earnings call, Tesla’s CEO Elon Musk said that the company is moving ahead with low-price-point electric cars, and they are expected to roll “by early 2025 if not late this year.”
“In terms of a new product roadmap, there’s been a lot of talk,” Musk said added. “We’ve updated our future vehicle lineup to accelerate the launch of new models.”
Tesla saw its adjusted earnings per share in the first quarter come at 45 cents compared to 51 cents expected by Wall Street analysts. The revenue of $21.30 billion also missed the mark, coming below the estimated $22.15 billion. However, Musk’s announcement largely mitigated the effects of poor 1Q results.
Tesla’s stock closed at $162.13 on Wednesday, representing a 12.06% increase on Tuesday’s closing price of $144.68 per share. The company’s shares are down 34.74% year to date.
