Elon Musk speaks on stage during the New York Times Dealbook Summit 2023 at Jazz at Lincoln Center on November 29, 2023 in New York.
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You’re here Shares jumped more than 10% Wednesday morning after CEO Elon Musk said the electric vehicle company plans to begin production of new affordable electric vehicle models by early 2025.
Musk’s comments came during Tesla’s earnings conference call on Tuesday, after the company reported disappointing first-quarter numbers. Revenue fell 9% year-over-year, its biggest annual decline since 2012.
The company previously planned to start production of the new electric vehicle models in the second half of 2025.
Tesla reported adjusted earnings per share of 45 cents on revenue of $21.3 billion, below the expected 51 cents in earnings per share and $22.15 billion in sales expected, according to LSEG.
Revenue fell from $23.3 billion a year ago and $25.17 billion the previous quarter.
Bank of America analysts said in a note to investors Wednesday that Tesla’s first-quarter results and executive comments “addressed key concerns” and “revitalized the growth narrative,” prompting them to push the stock from neutral to buy while maintaining their price target of $220.
They also expressed optimism that Tesla has demonstrated a positive business outlook as it prepares to launch new vehicle models and approve its driver assistance system.
“In the short term, the evolving news seems to suggest that the risk to the stock is more positive,” the analysts write.
UBS analysts on Tuesday reiterated their neutral rating on Tesla stock and lowered their price target from $160 to $147, saying they remained skeptical of the company’s comments.
“Increasingly, TSLA is a game of autonomy and, while progress is being made, we are cautious about near-term viability,” they wrote in a note. “We see limited growth for the current range and a lack of clarity on what these ‘new vehicles’ could bring.”
— CNBC’s Michael Bloom contributed to this report.
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