Tesla shares jump 13% after Musk says company aims to start production of affordable new EV by early 2025

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.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: 45 cents adjusted vs. 51 cents expected
Revenue: $21.30 billion vs. $22.15 billion expected

In its shareholder deck, Tesla reiterated a pessimistic outlook for 2024, telling investors that “volume growth rate may be notably lower than the growth rate achieved in 2023.

Prior to the 13% jump after hours, Tesla shares were down more than 40% this year, reaching their lowest since January 2023, on concerns about weak deliveries, competition in China and the company’s ongoing price cuts. Earlier this month, Tesla reported an 8.5% year-over-year decline in vehicle deliveries for the first quarter.

Musk was asked on the earnings call if he has any intention to leave Tesla given his many jobs, including leading SpaceX, controlling X (formerly Twitter) and running other businesses.Musk didn’t provide an answer.