Tesla's (NASDAQ:TSLA) stock saw a significant rise in pre-market trading on Wednesday, climbing as much as 11%, following the company's announcement of an accelerated timeline for launching more affordable vehicles.
This development comes as a positive shift from earlier speculations this month that Tesla might abandon these plans.
In its first quarter shareholder release issued late Tuesday, Tesla updated its vehicle lineup strategy, pushing forward the production timeline of new models to as early as late 2024 or early 2025, previously set for the second half of 2025.
"We have updated our future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production," Tesla stated in the release.
During the earnings call, CEO Elon Musk hinted that the introduction of new vehicles could happen as soon as later this year or in early 2025.
While specifics about the debut of the more cost-effective electric vehicle (EV) were not disclosed, Musk announced that more details would be shared on August 8, coinciding with the reveal of the company’s robotaxi..
Despite missing earnings and revenue expectations, investors responded positively to the news, signaling strong interest in Tesla’s refreshed approach to expanding its vehicle offerings and making electric cars more accessible.