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Tesla stock surges in after-hours trading

by Simon Jones Tech Reporter
24th Apr 24 2:28 pm

Tesla Inc. (TSLA) witnessed a remarkable surge in its stock value during after-hours trading on Tuesday. Initially, its stock had fallen to its lowest since 2021.

The unexpected rise came on the heels of an announcement by the electric vehicle giant that it would expedite the release of more budget-friendly automobiles.

This counters earlier speculations about abandoning these plans.

“We have updated our future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025,” Tesla disclosed in its first-quarter shareholder release.

Elon Musk, the CEO of Tesla, further hinted during the earnings call that the timelines for these new vehicles could be as early as 2025, or even before the end of this year.

However, Tesla refrained from specifying the exact debut date for the affordable EV. The American multinational automotive company promised more details to be revealed on August 8, coinciding with the unveiling of the much-anticipated robotaxi.

Cost-effective production

The expected models, including an entry-level $25,000 car, would allow it to compete with cheaper gasoline-powered cars and a growing number of inexpensive EVs, such as those made by China’s BYD.

At the beginning of the year, Tesla said the next-generation vehicle would drive a new wave of growth.

“In 2024, our vehicle volume growth rate may be notably lower than the growth rate achieved in 2023, as our teams work on the launch of the next-generation vehicle at Gigafactory Texas,” Tesla said in a quarterly results report.

Musk had promised to build a $25,000 car in 2020, a plan he later shelved and revived. Tesla’s cheapest offering, the Model 3 sedan, currently has a starting price of $38,990 in the United States.

Musk said last year he was concerned about the impact of high-interest rates on consumer demand for big-ticket items like cars.

Tesla redefines the future of mobility

Tesla has a track record of missing its targets for launches and pricing, and it would take time to build volume.

Musk recently said: “I’m often optimistic regarding time. But our current schedule shows that we will not start production soon” and that “We’ll be sleeping on the line practically.”

Making a profit from the cheaper EVs will be challenging, given the costs of batteries and traditional difficulties in producing quality inexpensive vehicles.

As the company navigates through challenges and charts a course toward a future of accessible electric mobility, its pioneering spirit and relentless pursuit of excellence position it at the forefront of shaping the automotive landscape for future generations.

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