Tesla Stock Jumps on Accelerated Production Plans Despite Earnings Miss [Video]

Tesla (TSLA) shares surged over 7% in after-hours trading Tuesday despite an earnings miss as the electric vehicle maker said it would accelerate production of new models, including a lower-cost vehicle.

Tesla said it would “accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025,” including “more affordable models.” The new and more affordable models are set to use aspects of Tesla’s next-generation platform and will be produced on the same production sites as Tesla’s current offerings.

Tesla’s decision to move up its timetable comes as the company has been under intense pressure amid soft electric vehicle demand and recently announced product recalls and layoffs.

The company’s revenue for the first quarter of 2024 was $21.3 billion, below analyst expectations and a 9% drop from the year-ago period. Adjusted net income and adjusted diluted earnings per share (EPS)were also below analysts’ …