Tesla Autos shares has increased by 15% on Wednesday morning after the billionaire CEO Elon Musk said released information that the company plans to begin production of new affordable EV models by early 2025.
Musk’s stated this during Tesla’s earnings call on Tuesday after the company reported disappointing first-quarter numbers. In the first quarter report the revenue fell 9% year-over-year, whic is its steepest annual decline since 2012.
Telsa previously were expected to start production of the new EV models in the second half of 2025.
Tesla reported 45 cents in adjusted earnings per share on $21.3 billion in revenue, falling short of the 51 cents in expected earnings per share and $22.15 billion in expected sales, per LSEG. Thier revenue dropped from $23.3 billion a year before and from $25.17 billion in the previous quarter.
Some analysts of Bank of America noted in an investor note Wednesday that Tesla’s first-quarter results and leadership’s commentary “addressed key concerns” and “revitalized the growth narrative,” prompting them to upgrade the stock from neutral to buy while maintaining their $220 price target. Also UBS analysts on Tuesday reiterated their neutral rating of Tesla stock and lowered their price target to $147 from $160, saying they remain skeptical of the company’s talk.
