Tesla profits tumble but shares rise on new vehicle plan [Video]

Tesla reported a big drop in quarterly profits Tuesday, pointing to elevated pressure on the electric vehicle market that has led to deep cost-cutting.

But shares of Elon Musk’s EV company rallied after Tesla signaled pledged to “accelerate” new more affordable autos — something Wall Street analysts have been clamoring for.

Tesla reported profits of $1.1 billion, down 55 percent from the year-ago quarter on revenues of $21.3 billion, down nine percent.

The results, which lagged analyst estimates, come as investors have sought greater strategic clarity from Musk amid a weaker performance and as the mercurial Tesla boss has touted Robotaxis as a venture at a time when there is rising skepticism about autonomous technology.

The company, which recently announced job cuts, has also …