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TSLA: Tesla Stock Rockets 12% as Investors Shrug Off Terrible Earnings for Elon Musk’s Promise
Key points:
- Tesla to reveal cheaper models by early 2025.
- Shares rise 12% in pre-market dealmaking.
- Profits plunge by 55% to $1.1 billion.
Billionaire engineer and Tesla CEO said the company aims to kick off production of affordable EV models in less than a year from now.
- Tesla stock
TSLA soared 12% in pre-market deals Wednesday after the company posted terrible earnings figures. Fortunately for shares and investors, Elon Musk delivered a well-timed statement that promised to bring back Tesla’s mojo after a painful start of 2024. - The eccentric billionaire and Tesla CEO said during the earnings call that the more-affordable model — perhaps Model 2 — is coming sooner than expected. Elon Musk told shareholders that the company has updated its future line-up with a start of production moved forward from the second half of 2025 “to be more like early 2025, if not late this year.”
- Numbers time. Tesla’s first quarter was a disaster. It picked up revenue of $21.3 billion, sliding below estimates for $22.7 billion and 9% lower than the same quarter a year ago. Net income, or profits, slid 55% from the same time span last year to $1.1 billion. Earnings per share arrived at 45 cents a pop, vs. 51 cents expected.