Tesla shares jump 11% after Musk says company aims to start production of affordable new EV by early 2025

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Tesla vehicles sit on the lot at a Tesla dealership on April 15, 2024 in Austin, Texas. 
Brandon Bell | Getty Images

Tesla is set to report first-quarter earnings after the bell on Tuesday.

Here’s what analysts are expecting, according to LSEG:

  • Earnings per share: 51 cents
  • Revenue: $22.15 billion

Wall Street is projecting that revenue will drop 5.1% from $23.33 billion a year earlier, which would mark the first year-over-year drop in sales since 2020, when the Covid pandemic disrupted production.

Tesla shares have plummeted 42% this year on concerns about weak deliveries, competition in China and the company’s ongoing price cuts. Earlier this month, Tesla reported an 8.5% year-over-year decline in vehicle deliveries for the first quarter.

Elon Musk’s electric vehicle company is now facing heightened competition worldwide, with fully electric cars still in demand but sales growth in the segment slowing. Tesla and key rivals have been slashing EV prices, on and off for months, to try to spur demand.

Tesla embarked on a massive restructuring this month with two executives, Drew Baglino and Rohan Patel, resigning. Musk said last week in a companywide memo that the automaker was cutting more than 10% of its global workforce.

The layoffs and resignations followed a Reuters report that said Tesla would scrap plans to make a low-cost electric car in the near future, and instead focus on self-driving technology. While Musk initially balked at the report, he later said in a post on X that Tesla would go “balls to the wall for autonomy.”

Musk has promised investors and customers a self-driving vehicle for years, but never delivered.

He’s now saying there will be an unveiling of a Tesla robotaxi on Aug. 8, 2024. Unveiling events don’t mean a vehicle is ready to be produced. For example, Tesla first unveiled a new version of its Roadster in December 2017, and has yet to produce the car.

Shareholders submitted and voted on questions for Tesla executives to answer ahead of Tuesday’s call. Submissions included a request for a “realistic timeline for launching a revenue generating robotaxi network,” and a progress update on a “cheaper next generation vehicle.”

A livestream of the earnings call is scheduled for 5:30 p.m. ET.

WATCH: The fact that Musk was right about EVs doesn’t mean he’s going to be right now

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