Elon Musk speaks at the 2023 New York Times Dealbook Summit at Jazz at Lincoln Center on November 29, 2023 in New York City.
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Tesla The company’s shares soared 15% on Wednesday morning after Chief Executive Elon Musk said the company plans to start producing new affordable electric models in early 2025.
Musk made the comments during Tesla’s earnings call on Tuesday, after the company reported disappointing first-quarter results. Revenue fell 9% year-on-year, the largest annual decline since 2012.
The company previously expected to start production of new electric models in the second half of 2025.
Tesla reported adjusted earnings of 45 cents per share on revenue of $21.3 billion, below LSEG’s forecast of 51 cents per share and $22.15 billion in expected sales.
Revenue fell from $23.3 billion a year earlier and $25.17 billion in the previous quarter.
Bank of America analysts said in an investor note Wednesday that Tesla’s first-quarter results and leadership comments “addressed key issues” and “reinvigorated the growth narrative,” prompting them to upgrade the stock to neutral from neutral. Buy while maintaining $220 price target.
They also expressed optimism that Tesla has a positive business outlook as it prepares to launch new models and obtain licenses for driver-assist systems.
“In the near term, the news wave appears to suggest that risks to the stock are tilting more aggressively,” the analysts wrote.
UBS analysts on Tuesday reiterated a neutral rating on Tesla shares and lowered their price target to $147 from $160, saying they remain skeptical of the company’s comments.
“Tesla is increasingly moving towards autonomy, and while progress is being made, we are cautious about near-term viability,” they wrote in a note. “We see growth in the current product line Limited, and it’s unclear what these ‘new cars’ will bring.”
—CNBC’s Michael Bloom contributed to this report.
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