Tesla's first-quarter net income plummeted 55 per cent, but its stock price surged in after-hours trading Tuesday as the company said it would accelerate the production of new, more affordable vehicles.Cars are seen parked at a Tesla dealership in Berlin on Tuesday. Tesla's first-quarter net income plummeted 55 per cent, but its stock price surged in after-hours trading Tuesday as it said it would accelerate the production of new, more affordable vehicles.
The company did that in a letter to investors Tuesday, saying that production of smaller, more affordable models will start ahead of previous guidance.Where you live and how much you drive each day matters when it comes to the cost-effectiveness of an electric vehicle, compared to gas. A new UBC study crunches the numbers.
The company also appears to be counting on a vehicle built to be a fully autonomous robotaxi as the catalyst for future earnings growth. Musk has said the robotaxi will be unveiled on Aug. 8.Shares of Tesla rose over 11 per cent in trading after Tuesday's closing bell, but are down more than 40 per cent this year.
The company also repeated that vehicle sales growth "may be notably lower" this year than last as it works on the launch of its next generation vehicle., Tesla lopped $2,000 US off the price of the Models Y, S and X in the U.S. and reportedly made cuts in other countries including China.