Tesla’s stock jumped 15 percent Wednesday morning after CEO Elon Musk announced that the electric vehicle company plans to produce new affordable EV models in early 2025.
During Tesla’s earnings call on Tuesday, Elon Musk’s discussion of the new EV models was particularly significant as the company reported a surprising 9 percent year-over-year decline in revenue, the largest since 2012.
The company initially planned to produce new EV models in the latter part of 2025.
While Tesla disclosed adjusted earnings per share of 45 cents on revenue of $21.3 billion, which missed LSEG’s forecast of 51 cents in fees and expected sales of $22.5 billion, earnings were in line with last year.
Down from $23.3 billion and $25.7 billion in the prior quarter. Moreover, analysts at Bank of America said in an investor note on Wednesday that Tesla’s first-quarter results and leadership comments raised vital concerns.
The market’s reaction to Tesla’s first-quarter results was mixed. While Bank of America upgraded the stock to buy from neutral, maintaining their $220 price target, UBS analysts cut their neutral rating on Tesla stock in half on Tuesday and Reduced its price target from $160 to $70.
People Also Ask
What is the Elon Musk Tesla’s Plan for the Future?
According to its findings in China, Germany, California, and Texas, Elon Musk’s Tesla plan calls for building “affordable models” that include next-generation platform components on production lines.
Will Tesla make a $25,000 Car?
Before the Tesla earnings call on January 24, 2024, the company reported that its head notified its suppliers. It will start producing a new mass-market electric vehicle codenamed “Redwood” in mid-2025.
What is Tesla’s strategic plan?
Tesla’s strategy focuses on sustainability, innovation, and customer-centricity. These can provide significant value to the organization in terms of competitive advantage, brand, image, and long-term success.
What is the most expensive Tesla?
- Tesla 2021 Model S Plaid+ is currently the most expensive Tesla model, valued at USD 149,990.
- The Model X Performance, priced at $119,990, is Tesla’s second-most expensive model.
What is Tesla’s next vehicle?
Tesla’s next-generation vehicle is an electric car platform under development. It will be the company’s third mainstream platform. The production volumes are expected to surpass those of the model 3/Y platform greatly.
Conclusion
Tesla CEO Elon Musk said the EV maker plans to introduce never-affordable models in early 2025. Following recent uncertainty about the status of the company’s long-discussed plans for a lower-case EV in its lineup.