Tesla’s stock rose by almost 14% on Wednesday. This happened after Tesla, the company that makes electric cars, shared some good news. They said they expect to sell more cars this year. Also, they said they plan to make cars that are more affordable starting in early 2025.
People who invest money in Tesla were worried about how the company was doing. It was a rough week for Tesla. They had to let go of many employees, some important people left the company, and they had to reduce prices for their cars. Also, they had to cancel a big meeting with the Prime Minister of India.
Tesla’s new plans made investors feel better. Even though Tesla’s first-quarter results were not great, and they didn’t make as much money as people expected, investors felt hopeful again.
Analysts who study companies and their stocks said that Tesla’s CEO, Elon Musk, is trying to make the investors happy by saying they will release new cars sooner.
Because of this good news, Tesla’s stock price went up a lot. This means the company’s value increased by nearly $50 billion. This year, Tesla’s stock price went down by 42%. This is because fewer people were buying electric cars, and other companies were competing with Tesla in China.
The plan for Tesla to make more affordable cars might make shareholders happy. They will vote soon on Elon Musk’s pay package. If Tesla does well, Musk could get a big bonus. But some shareholders were unhappy with the company because the stock price went down and the company faced challenges.
Tesla’s plans to make cheaper cars were not detailed. But many analysts think that Tesla will make versions of their current cars, like the Model Y or Model 3, but with fewer features, so they will be less expensive.
Elon Musk, the CEO of Tesla, didn’t talk much about the cheaper cars. Instead, he talked about other projects like robots and self-driving cars. These are things Tesla is working on, but they are not ready yet.
Tesla’s stock price went up to about $160 per share before the stock market opened. This made some people who bet against Tesla, called short-sellers, lose money. But overall, short-sellers made a profit of $8 billion this year.
Some experts think Elon Musk’s plan to make more affordable cars is smart. Even though it might cost a lot of money, it could help Tesla compete better in the electric car market.
