Tesla stock soars on Elon Musk's vision for future: What we know about new car models

After being down more than 40% ahead of earnings, Tesla stock is ripping higher on the announcement production of cheaper cars will begin sooner than expected.

Author:
Daniel Kuhn
Apr 24, 2024 10:17 AM EDT

Caroline Woods brings the latest business headlines from the floor of the New York Stock Exchange as markets open for trading on Wednesday, April 24.

LOS ANGELES, CALIFORNIA - APRIL 13: Elon Musk attends the 2024 Breakthrough Prize Ceremony at Academy Museum of Motion Pictures on April 13, 2024 in Los Angeles, California. (Photo by Taylor Hill/Getty Images)

FULL TRANSCRIPT:

I'm Caroline Woods reporting from the New York Stock Exchange — Here's what we're watching on TheStreet today.

Investors will be watching the latest read on inflation with Friday's release of the March PCE index. PCE is just one of the many data points the Fed will consider when making its next rates decision on April 30.

Wall Street is also reacting to key earnings out of Boeing and AT&T ahead of results from Meta and Chipotle after Wednesday's closing bell.

Continuing with earnings — Tesla (TSLA) once again caught Wall Street's full attention after the EV giant reported its steepest revenue loss since 2012 amid a broader decline in EV sales in the first quarter of 2024.

Tesla's net income of $1.13 billion marked a 55% decline from the same reporting period in 2023.

Tesla has faced increasing pressure over the last year from weak deliveries, increased competition in China, price cuts and high-profile executive departures.

Heading into the report, Tesla stock was down more than 40% so far in 2024.

However, Wall Street found the silver lining in the report. In a letter to investors, Tesla announced the production of smaller, cheaper EVS will begin sooner than expected.

The new models will be built using current Tesla platforms and production lines. CEO Elon Musk told analysts he expects production to begin by 2025, "if not late this year."

Musk used Tesla's earnings call to remind analyts there's more to Tesla than making cars. He said Tesla should be valued as an AI robotics company, reflecting his ongoing focus on the development of full self-driving technology.

That'll do it for your daily briefing. From the New York Stock Exchange, I'm Caroline Woods with TheStreet.