Tesla Inc. shares jumped in extended trading after Chief Executive Elon Musk told investors that production of new affordable electric car models could begin sooner than expected.
The stock rose more than 12% in after-hours trading after the earnings report showed a significant drop in revenue.
Musk said on the earnings call that the company plans to start producing new models in early 2025, if not later this year, after previously expecting to start production in the second half of 2025.
Tesla Inc.'s revenue fell 9% from a year earlier, the biggest year-over-year decline since 2012, as the electric car company grapples with the impact of ongoing price cuts.
In earnings results announced after Wall Street closed, Tesla reported adjusted earnings per share of 45 cents, compared to expectations of 51 cents per share by LSEG.
Revenue was $21.30 billion, versus expectations of $22.15 billion by LSEG.
In front of the shareholder group, Tesla reiterated its pessimistic outlook for 2024, telling investors that volume growth could be significantly lower than the growth rate achieved in 2023.
The company said it is working to accelerate the launch of new vehicles, including affordable models, which will be able to be produced on the same manufacturing lines as Tesla's current lineup.
Tesla aims to fully utilize its current production capacity and achieve more than 50% growth compared to 2023 production before investing in new manufacturing lines.
