Tesla shares jump 12% after company aims to produce affordable new EV by early 2025

$Tesla(TSLA.US)$ $BYD COMPANY(01211.HK)$ $NIO Inc(NIO.US)$ $XPeng(XPEV.US)$ The article reported that Tesla stock jumped 12% in extended trading after CEO Elon Musk told investors that production of new affordable EV models could begin sooner than expected. Here is the summary of the earnings:

1) Musk said on the call that the company plans to start production of new models in "early 2025, if not late this year," after previously expecting to begin in the second half of 2025.

2) Musk also touted Tesla's investments in artificial intelligence infrastructure, and said the company is in talks with "one major automaker" to license its driver assistance system, which is marketed in the U.S. as the Full Self-Driving, or FSD, option.

3) Also in the deck, Tesla showed off screens of a robotaxi-based ride-hailing service. The company has been promising a self-driving vehicle for years without delivering on Musk's promise.

4) Free cash flow turned negative in the quarter, with the company reporting a deficit of $2.53 billion. A year ago, Tesla reported free cash flow of $441 million, a number that reached $2.06 billion in the fourth quarter. Tesla attributed the negative figure to a $2.7 billion buildup in inventory and $1 billion in capital expenditures on "AI infrastructure."
5) Revenue in Tesla's energy division increased 7% to $1.64 billion, while services and other revenue rose 25% to $2.29 billion compared to the same period last year.
6) Tesla reported a 9% drop in first-quarter revenue on Tuesday, the biggest decline since 2012, and missed analysts' estimates, as the electric vehicle company weathers the effect of ongoing price cuts. Earnings per share: 45 cents adjusted vs. 51 cents expected. Revenue: $21.30 billion vs. $22.15 billion expected. Revenue declined from $23.33 billion a year earlier and from $25.17 billion in the fourth quarter. Net income dropped 55% to $1.13 billion, or 34 cents a share, from $2.51 billion, or 73 cents a share, a year ago.

My take: As I posted recently, Tesla will be producing $25K new model and Robotaxi concurrently . The decline in earnings is expected when the Q1 delivery was reported a month ago. The share price jump in post market implies that investors have already priced in the negative sentiment and looked forward into the future. The skeptics and the negative bias will say the surge is temporary. Like I said previously, share price doesn't reflect the earnings and only time will tell - the stock market is a weighing machine in long run.