Tesla stock up after Elon Musk says new affordable EV models coming

Tesla shares closed up 12% on Wednesday after CEO Elon Musk mentioned the electric-vehicle firm plans to start manufacturing of latest inexpensive EV fashions by early 2025.

Musk’s feedback got here throughout Tesla’s earnings name on Tuesday after the corporate reported disappointing first-quarter numbers. Income fell 9% 12 months over 12 months, its steepest annual decline since 2012.

The corporate beforehand anticipated to begin manufacturing of the brand new EV fashions within the second half of 2025. Tesla has not disclosed any particulars about inexpensive new fashions within the works. Usually, the corporate promotes design ideas years forward of manufacturing in “unveiling” occasions.

Tesla reported 45 cents in adjusted earnings per share on $21.3 billion in income, falling in need of the 51 cents in anticipated earnings per share and $22.15 billion in anticipated gross sales, per LSEG.

Income dropped from $23.3 billion a 12 months earlier than and from $25.17 billion within the earlier quarter.

Analysts of Financial institution of America mentioned in an investor word Wednesday that Tesla’s first-quarter outcomes and management’s commentary “addressed key considerations” and “revitalized the expansion narrative,” prompting them to improve the inventory from impartial to purchase whereas sustaining their $220 value goal.

In addition they expressed bullish optimism that Tesla demonstrated a optimistic enterprise outlook because it prepares to launch new car fashions and license its driver help system.

“Within the near-term the tide in information stream seems to recommend the danger to the inventory is skewing extra positively,” the analysts wrote.

UBS analysts on Tuesday reiterated their impartial score of Tesla inventory and lowered their value goal to $147 from $160, saying they continue to be skeptical of the corporate’s discuss.

“More and more, TSLA is a play on autonomy, and whereas progress is being made, we’re cautious on near-term viability,” they wrote in a word. “We see restricted development for present lineup and lack of readability on what these ‘new autos’ may carry.”

— CNBC’s Michael Bloom and Lora Kolodny contributed to this report.