Tesla shared first-quarter financial results with its shareholders on Tuesday and said it has accelerated the rollout of new, more affordable electric cars.
Tesla reported its biggest revenue decline in 12 years, with a 9% drop from earnings last year. The company earned $21.3 billion in the first quarter of 2024, down from $23.3 billion in the same period last year and $25.2 billion last quarter.
In a Tuesday call announcing earnings, Tesla CEO Elon Musk offset news of the decline with an update that the company will begin producing new, more affordable electric cars “in early 2025 if not late of this year”. Tesla shares surged on the news.
Related: Tesla sales and deliveries down for first time since 2020
Tesla’s cheapest offering right now is the $38,990 Model 3. The company announced a Model 3 Performance upgrade starting at $52,990 ahead of Tuesday’s earnings call.
Tesla Model 3. Photo credit: Na Bian/Bloomberg via Getty Images
The announcement accelerates the journey towards more affordable electric vehicles (EVs). Tesla had previously said it would start producing more affordable electric vehicles in the second half of 2025.
In a presentation shared with investors, Tesla said new electric vehicles, including lower-priced models, will incorporate familiar Tesla features into a new, next-generation platform, but the company’s overall growth rates could be “significantly lower” this year than last year while his teams work on it.
Related: Elon Musk informs Tesla staff that layoffs will affect at least 14,000 employees – Read the leaked email
Musk emphasized to shareholders that Tesla is more than just a car company, arguing that it should be thought of more as an AI technology company.
“Tesla’s way of thinking is almost entirely in terms of solving autonomy and being able to turn on that autonomy for a giant fleet,” Musk said.
Tesla has a humanoid robot in development, Musk told investors, and it may be able to help at Tesla factories by the end of this year.
Related: Elon Musk reveals when Tesla will release its first Robotaxi
Earlier this month, Musk posted on X that the Tesla robotaxi, a fully autonomous, self-driving electric car, will arrive this August.
Tesla also laid off at least 14,000 employees last week.