Tesla’s Stock Soars as Electric Vehicle Maker Plans to Speed Up Release of Affordable Cars

Tesla (TSLA) stock soared in post-market trading after the company announced plans to accelerate the launch of more affordable vehicles. In its first quarter shareholder release, Tesla revealed that it had updated its future vehicle line-up to introduce new models ahead of schedule, utilizing aspects of both next-generation and current platforms.

Despite missing revenue and earnings estimates for the quarter, investors reacted positively to the news, with Tesla shares surging over 6% in after-hours trading. The company reported adjusted earnings per share of $0.45 and revenue of $21.30 billion, marking its first revenue decline in four years. However, Tesla still reported $1.2 billion in operating profit and $1.5 billion in adjusted net income.

Tesla also teased a ride-hailing feature on its app, hinting at the potential for a Tesla robotaxi service in the future. The company reiterated its guidance for lower delivery volumes but confirmed plans for a sub-$30,000 mainstream EV, known as the Model 2, which will be based on the next-generation platform.

Despite recent challenges, including lower-than-expected global deliveries and concerns about demand, Tesla’s confirmation of the Model 2 and the robotaxi feature has reignited investor optimism. CEO Elon Musk dismissed reports of canceling the cheaper EV and announced plans for the robotaxi, emphasizing Tesla’s commitment to innovation and disruptive manufacturing strategies.

As the story continues to develop, investors and analysts will be closely monitoring Tesla’s progress in delivering on its promises and maintaining its position as a leader in the electric vehicle market. Stay tuned for updates on this evolving story.