Tesla stock soars 11% in premarket trading after Elon Musk promises affordable EV
NY Post
Tesla’s stock soared by more than 11% in pre-market trading early Wednesday morning after CEO Elon Musk said the company would accelerate the rollout of more affordable electric vehicles in hopes of boosting sagging profits.
Musk’s announcement was aimed at calming nervous investors on Wall Street who were still trying to digest the company’s most recent earnings report, released on Tuesday, that showed profit fell to its lowest in any three-month period since 2021.
Dan Ives, senior analyst at Wedbush Securities, said that Tesla and Musk “are facing a Category 5 storm after a Cinderella ride the last few years.”
But Ives added that he is maintaining a “bullish investment thesis” thanks to what he anticipates will be a “Model 2.5” — a lower cost Tesla that Musk indicated could hit the streets by early next year in a call with analysts.
Ives said the low-cost EV will be “key to the Tesla volume turnaround in 2025.”
Musk declined to provide details of the more affordable models and instead spent much of the earnings call on Tesla’s efforts to diversify its business into AI, humanoid robots and operating a fleet of autonomous vehicles — all based on software and hardware products it has not yet fully developed.
