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Key Takeaways
- Tesla shares jumped in after-hours trading Tuesday despite an earnings miss, as the electric vehicle maker said it would accelerate production of new models, including a lower-cost vehicle.
- Tesla’s revenue for the first quarter came in at $21.3 billion, representing a 9% year-over-year decline, while adjusted net income was $1.54 billion, down 48% from the year-ago period.
- The company has been under pressure amid soft electric vehicle demand and recently announced product recalls and layoffs.
Tesla (TSLA) shares surged over 7% in after-hours trading Tuesday despite an earnings miss as the electric vehicle maker said it would accelerate production of new models, including a lower-cost vehicle.
Tesla said it would “accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025,” including “more affordable models.” The new and more affordable models are set to use aspects of Tesla’s next-generation platform and will be produced on the same production sites as Tesla’s current offerings.
Tesla’s decision to move up its timetable comes as the company has been under intense pressure amid soft electric vehicle demand and recently announced product recalls and layoffs.
The company’s revenue for the first quarter of 2024 was $21.3 billion, below analyst expectations and a 9% drop from the year-ago period. Adjusted net income and adjusted diluted earnings per share (EPS) were also below analysts’ estimates and showed 48% and 47% declines, respectively, from a year earlier.
| Q1 2024 Actual | Analyst Estimates for Q1 2024 | Q1 2023 | Year-Over-Year Change | |
|---|---|---|---|---|
| Revenue | $21.3 billion | $22.25 billion | $23.33 billion | (9%) |
| Adjusted Diluted Earnings / (Loss) Per Share | 45 cents | 52 cents | 85 cents | (47%) |
| Adjusted Net Income / (Loss) | $1.54 billion | $1.88 billion | $2.93 billion | (48%) |
For the first quarter, Tesla deliveries fell 8.5%, a sharp decline compared to prior quarters. Slow-paced EV adoption in the U.S. and intense competition in the China market from native EV makers have dragged on Tesla sales, weighing on investor sentiment and Tesla’s stock price.
Tesla was the worst-performing company in the S&P 500 for the three months ending March. In contrast, the S&P 500 had its best first quarter since 2019.
Tesla shares were up 7.7% at $156.39 around 5:15 p.m. ET Tuesday following the company’s earnings release. However, even at that price, the stock has lost more than one-third of its value since the start of 2024.