Tesla shares were 10% higher in the US premarket after the EV maker released earnings in which revenue missed despite broad price cuts.
Musk outlined a strategy to take on increased competition by integrating next-gen technology into ranges targeted at the mass market.
Plans to accelerate the launch of robotaxis and autonomous vehicles were an integral element of Musk’s strategy as the billionaire set out his plans for the group to bolster its AI credentials.
The 10% jump in Tesla shares raised some eyebrows, given the general slowdown in sales, but the move was part of a general uptick in US stocks overnight, with a number of upbeat releases helping lift the mood.
“Tesla was one such positive story, after the market responded well to news it’s planning to accelerate the launch of its new models. This will put the brakes on planned cost cutting, but is a way to hopefully boost volumes,” said Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown.
“In the increasingly competitive space of EVs, Tesla’s must-have status is one element it has above the others. In a way, it’s modus operandi isn’t too dissimilar to what Apple did for smartphones.
“While revenue missed the mark compared to analyst expectations, investors have been encouraged to hear of Musk’s plans to make bold decisions. Sentiment is likely to remain slightly subdued until we have further clarity on how the group plans to combat falling demand and price competition, on a more permanent basis.”
