Tesla to launch new models ahead of planned timeline, shares jump

FILE PHOTO: Visitors check a Tesla Model 3 car next to a Model Y displayed at a showroom of the U.S. electric vehicle (EV) maker in Beijing, China February 4, 2023. REUTERS/Florence Lo/File Photo

(Reuters) -Tesla said on Tuesday it had pulled forward the launch of new models from the second half of 2025, sending its shares up nearly 7% in after-hours trading.

“This update may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times,” the electric vehicle maker said.

FILE PHOTO: Tesla cars are seen parked at the construction site of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 20, 2022. REUTERS/Hannibal Hanschke/File Photo

Tesla did not elaborate on pricing of the new vehicles.

Reuters reported earlier that Tesla had canceled its long-promised inexpensive model that Chief Executive Elon Musk in January had predicted would be available in late 2025. The news organization reported that Tesla continues to develop robotaxis on the same small-vehicle platform.

FILE PHOTO: The logo of car manufacturer Tesla is seen at a dealership in London, Britain, May 14, 2021. REUTERS/Matthew Childs/File Photo

Global growth in demand for EVs has eased, with sales expanding at lower-than-expected rates due to reductions in state subsidies and high interest rates.

“Global EV sales continue to be under pressure as many carmakers prioritize hybrids over EVs,” Tesla said.

Tesla’s revenue fell in the first quarter as it handed over fewer electric vehicles to customers due to slowing demand and intense competition worldwide.

The company on Tuesday reported revenue of $21.3 billion for the three months ended March, compared with $23.33 billion a year earlier. Analysts on average had estimated $22.15 billion, according to LSEG data.

The world’s most valuable automaker last recorded a fall in revenue in the second quarter of 2020, when the COVID-19 pandemic hampered production and deliveries.

Net profit in the first quarter stood at $1.13 billion, compared with $2.51 billion, a year earlier.

(Reporting by Akash Sriram in Bengaluru and Hyunjoo Jin in San FranciscoEditing by Sriraj Kalluvila, Lisa Shumaker and Matthew Lewis)