The stock market witnessed an impressive jump in Tesla shares, which rose more than 10% in pre-market trading to reach a new high of $161,13 per share. This increase comes at a critical time for the company, which has seen its shares fall 42% throughout the year and 17% since announcing lower-than-expected deliveries in the first quarter, totaling approximately 387.000 units.
During the first quarter earnings call, CEO Elon Musk brought encouraging news for investors and brand enthusiasts. Musk promised to make more affordable electric vehicles (EVs) and announced promising developments in robotics, such as Optimus, a humanoid robot that could revolutionize the job market in several industries.
Figures released for the first quarter showed revenue of US$21,3 billion, a drop from US$23,3 billion in the same period last year. This result marks Tesla's first annual quarterly drop since 2020. Adjusted earnings per share were 45 cents, below market expectations that pointed to 52 cents.
Despite these challenges, Musk's promised innovations appear to have reignited interest in Tesla's growth potential. Musk highlighted that the new car model, dubbed Model 2, will have an estimated price of US$25 and production is expected to begin next year. Furthermore, the Optimus robot could be available on the market by the end of next year, promising to alleviate labor shortages in critical sectors.
Tesla also announced significant cuts to its workforce, with the layoff of 6.020 employees in Texas and California, and a global reduction affecting more than 14.000 jobs. These layoffs are a response to slowing demand and tightening profit margins as the company adjusts to face an increasingly fierce competitive environment.
Market excitement over Musk's promises and expectations for innovative products helped boost the company's shares. With more affordable EVs and the introduction of advanced technologies such as the humanoid robot, Tesla continues to seek to expand its market and diversify its revenue sources, facing the challenges posed by market conditions.
