Tesla shares soar on revised timeline for new models
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More news: Shares in Tesla have soared more than 13% to US$144.61 ($222.77) in after hours trading in New York after the electric vehicle maker announced it would introduce "new models" by early 2025, bringing forward the timeline from the second-half of next year.
The company did not provide any details, but CEO Elon Musk said these would be "more affordable models" which would be built using current production lines. Reuters had earlier reported that Tesla has scrapped plans for its planned mass-market Model 2 vehicle.
Tesla quarterly revenue drops, to launch new models
The news: Tesla has pulled forward the launch of new models from the second half of 2025, sending its shares higher despite the company’s first quarterly drop in revenue since 2020.
The numbers: It reported revenue of USD21.3 billion ($32.8 billion) for the three months ended March, compared with USD23.33 billion a year earlier and analyst estimates of USD22.15 billion. Net profit in the first quarter stood at USD1.13 billion, compared with USD2.51 billion a year earlier. Tesla shares jumped nearly 7% in after-hours trading in New York.
The context: Tesla's revenue fell in the first quarter as it handed over fewer electric vehicles to customers due to slowing demand and intense competition worldwide. The company said global EV sales continued to be under pressure as many carmakers prioritise hybrids over EVs.
Ahead of the results, Tesla said it would lay off 6,020 employees in Texas and California after last week announcing a more than 10% cut in its global workforce as well as price cuts amid pressure from dropping sales and an intensifying price war among EV makers.
After its results, the world’s most valuable car maker announced it would pull forward the launch of new models from the second half of 2025, but did not elaborate on pricing of the new vehicles.
The results were released amid a public spat between Anthony Albanese and Tesla CEO Elon Musk, as Australia’s online safety regulator takes Musk's X Corp to court, to force it to comply with orders to remove graphic footage of last week’s stabbing of a Christian bishop in Sydney’s west.
What they said: "This update may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times," the electric vehicle maker said.
