United States – The shares of the electric car company “Tesla” rose in yesterday’s trading, after the company’s CEO, Elon Musk, stated that “Tesla” will accelerate the pace of production of new cars at cheaper prices.
The company, based in Austin, Texas, said it generated $1.13 billion in the period from January to March of 2024, compared to $2.51 billion in the same period last year.
Investors and analysts were looking for some signs that Tesla would take steps to halt the decline in its shares this year and increase sales.
The company did this in a letter to investors yesterday, Tuesday, saying that it would begin producing smaller models at lower prices.
Smaller models, including the small “Model 2” car, which is expected to cost about $25,000, will use the foundations of new generation vehicles and some features of current models.
During a conference call with analysts, the CEO of the American company, Elon Musk, said that he expects production to begin in the second half of next year, if not late this year.
The American businessman added: “There will be no need for new factories or huge new production lines for new vehicles.” He continued: “This modernization may result in a smaller cost reduction than previously expected, but it will enable us to increase our vehicle volumes in a wiser and more efficient manner in terms of capital expenditures during times of uncertainty.”
He stated that he expects Tesla to sell more cars this year compared to the 1.8 million cars sold last year. The company also appears to be relying on a vehicle designed to be a robotaxi as a catalyst for future earnings growth.
Tesla shares rose 11% in trading on Tuesday, but have fallen more than 40% this year.
Source: A B
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2024-04-24 13:14:04