Tesla shares jump 10% after announcing launch of affordable EVs

Tesla shares jumped over 10% at the market open on Wednesday after the company said it would accelerate the launch of more affordable vehicles, countering reports earlier this month the company would scrap these plans.

“We have updated our future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025,” Tesla said in its Q1 shareholder release late Tuesday.

On the company’s earnings call, CEO Elon Musk said the timelines for new vehicles could be in early 2025 if not later this year. Tesla declined to say when the cheap EV will debut, though Musk did say the company would talk more about these vehicles on Aug. 8, the day the robotaxi will be revealed.

“These new vehicles, including more affordable models, will utilize aspects of the next generation platform as well as aspects of our current platforms, and will be able to be produced on the same manufacturing lines as our current vehicle line-up,” Tesla said in the release.

Despite reporting a revenue and earnings miss, investors seemingly cheered the much-needed update on the EV maker’s current and future prospects.