Tesla Stock Surges Despite Disappointing Q1 Results
Tesla Inc. (TSLA) shares are on the rise, despite the company's disappointing Q1 results. The electric vehicle giant's stock surged after it announced plans to speed up the launch of new models.
Q1 Results Fall Short, But New Model Announcement Boosts Stock
CNBC correspondent Phil LeBeau described Tesla's Q1 results as "ugly." However, the company's shares soared following its announcement of an accelerated new model launch. Tesla stated that it has updated its future vehicle line-up to accelerate the launch of new models ahead of the previously communicated start of production in the second half of 2025. This includes more affordable models and a next-generation platform.
Shareholder Letter Hints at Next-Gen Vehicle Development
The company's shareholder letter on Tuesday also mentioned the development of a next-gen vehicle. Tesla acknowledged that this update might result in less cost reduction than previously expected but would allow for a more efficient increase in vehicle volumes during uncertain times.
Q1 Revenue Misses Estimates, Stock Price Fluctuates
Despite the disappointing Q1 results, Tesla's stock has been on the rise. The company's Q1 revenue of $21.0 billion was 9% lower than the previous year and missed the Street consensus estimate of $22.15 billion. Automotive revenue was $17.38 billion in the quarter, down 13% year-over-year. Services and other revenue of $2.29 billion rose 25% year-over-year.
The company said revenue was impacted by lower average selling prices and lower vehicle deliveries in the quarter. Earnings per share were 45 cents in the quarter, which missed a Street consensus estimate of 51 cents per share.
According to data from Benzinga Pro, Tesla shares are currently priced at $144.61, reflecting a 1.80% increase from Tuesday's closing price. Notably, in after-hours trading, the stock surged by 13.38%. However, despite these fluctuations, Tesla's shares have experienced a year-to-date decline of 41.79%.