Tesla Stock Jumps on Accelerated Production Plans Despite Earnings Miss
15 minutes ago
Tesla (TSLA) shares surged more than 12% in early trading Wednesday 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.
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.
Tesla was the worst-performing stock in the S&P 500 in the first three months of the year. Even with Wednesday’s gains, shares have lost about 34% of their value since year-to-date.
-Naomi Buchanan
Stocks Making the Biggest Moves Premarket
58 minutes ago
Gains:
- Tesla (TSLA): Shares of the electric vehicle maker surged more than 11% after Elon Musk said the company had accelerated its timeline to produce new models, including a long-promised low-cost car.
- Texas Instruments (TXN): Shares of the analog chipmaker rose 7% after it topped estimates with its quarterly earnings and forecast a rebound in chip demand in the coming quarters.
- AT&T (T): The telecom’s shares rose more than 4% after it reported slightly better-than-expected first-quarter earnings despite missing on revenue.
Losses:
- Enphase Energy (ENPH): Shares of the solar energy company fell nearly 7% after it missed first-quarter earnings estimates and offered a downbeat sales outlook amid a prolonged slump in US demand for solar solutions.
- Bunge Global (BG): Shares of the agricultural commodities company fell 4% after reporting revenue fell 12% in the first quarter, more than analysts were expecting.
- Global Dynamics (GD): Shares of the defense and aerospace company slipped 1% after its first-quarter earnings fell short of estimates.
Stock Futures Rise as Tech Rally Continues
1 hr 44 min ago
Futures contracts connected to the Dow Jones Industrial Average were little changed in premarket trading on Wednesday.
S&P 500 futures were up 0.2%.
Nasdaq 100 futures traded 0.6% about an hour before markets opened.
