Tesla’s stock rose in trading after the company shared plans to make cheaper cars more quickly.
“In the future, we will start making new car models sooner than expected, even before the second half of 2025,” Tesla said in a report to shareholders. “These new cars, including ones that cost less, will use some new technology and some old, and we can make them on the same assembly lines as our current cars.”
Even though Tesla didn’t make as much money as expected, investors were happy to hear about the company’s future plans because Tesla’s stock hasn’t been doing well this year. Tesla’s stock went up more than 6% after the announcement.
For the past quarter, Tesla earned 45 cents per share (financial experts thought it would be 52 cents), and its total sales were $21.30 billion (financial experts thought it would be $22.31 billion), according to Bloomberg. This was the first time in four years that Tesla didn’t make as much money.
Tesla also showed pictures of a new feature in its app that might let people use their Tesla cars as taxis.
Tesla also said that it expects to sell fewer cars than it thought before. This is similar to what it said in the last report it gave in the last quarter.
Before Tesla shared its first-quarter results, its stock price had been going down because Tesla’s last quarterly report wasn’t as good as people expected. Tesla didn’t sell as many cars as experts thought in the first quarter, and it didn’t make as many cars as it thought it would, either.
Tesla saying that it will make a new, cheaper electric car that will cost less than $30,000 is important news for investors. They see this new car as a way for Tesla to sell more cars because they thought Tesla would use a new way to make these cars that would make them cheaper. When Reuters said that Tesla might not make this cheaper car, Elon Musk, Tesla’s CEO, said that Reuters was lying. Later, Musk said on Twitter that Tesla will indeed make a new type of taxi that won’t need a driver.
“We will keep trying to make a new type of taxi that will be much cheaper to make,” Tesla said in its report.
