By Aditya Soni and Reshma Rockie George (Reuters) -Tesla shares surged about 10.5% in premarket trading on Wednesday after the electric-car maker eased some worries about slowing growth with a prediction that sales would rise this year and plans to roll out more affordable models in early 2025.
Chief Executive Elon Musk just reassured investors on one big question, but a UBS analyst says he left many more in that wake. Coming into Tesla’s earnings call Tuesday afternoon, investors had been jittery about the company’s low-cost Model 2 plans — which the company had signaled might be deprioritized as Tesla focuses on its robotaxi ambitions.
Tesla expects to book more than $350 million in costs in the second quarter for the mass layoffs it began last week, the automaker disclosed in a regulatory filing on Wednesday. The electric vehicle maker also reiterated that it expects capital expenditure to exceed $10 billion in 2024 and to be between $8 billion to $10 billion in each of the following years.
Tesla said on Tuesday that it will use its existing factories to build new and more affordable vehicles as early as late this year, leaving investments in new factories in Mexico and India unlikely in the near term.
T esla Chief Executive Elon Musk may have given investors what they wanted with promises of a more affordable vehicle coming soon, but those promises may lead to more pain for investors. While reporting a disappointing first quarter on Tuesday,
Tesla's first-quarter net income plummeted 55% as falling global sales and price cuts sliced into the electric vehicle maker's revenue and profit margins
Tesla said on Tuesday it would introduce "new models" by early 2025 using its current platforms and production lines as it retreated from more ambitious plans to produce an all-new model that had been expected to cost $25,