Tesla (NASDAQ:) released its long-awaited first-quarter 2024 financial report on Tuesday, and the electric vehicle specialist reported its biggest sales decline since 2012, with first-quarter profits falling 9%, failing to meet financial analysts’ forecasts it could not do it
Despite disappointing financial results, Tesla’s stock price rose significantly in premarket trading. This was influenced by CEO Elon Musk’s comments that production of new low-cost electric vehicle models could start early.
Shares were up more than 12% before trading began.
Elon Musk has indicated that Tesla aims to begin the manufacturing process for these new models “in early 2025 or later this year,” ahead of the expected second half of 2025.
The billionaire also discussed Tesla’s investment in artificial intelligence systems and noted that the company is currently in talks with a “major automotive manufacturer” to license its fully self-driving driver assistance (FSD) technology.
“In a much-needed conference call last night, Elon Musk provided leadership and laid the foundation for Tesla’s expansion strategy, including introducing affordable vehicles for production and delivery in 2025,” Wedbush financial analysts said in a report.
“By 2024, the skeptics were right and clear in this argument … However, we believe that the next stages of Tesla’s growth story and vision for autonomous vehicles are now unfolding, which is a key focus of our optimistic investment outlook . forward “I’m sure it is,” he continued
Wedbush kept its positive ‘market outperform’ rating on TSLA, but lowered its price target from $300 to $275.
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