Tesla’s first-quarter net income saw a significant decline of 55%, but the company’s stock witnessed a surge in after-hours trading on Tuesday. This was attributed to the announcement of accelerated production of new, more affordable vehicles. In a letter to investors, the company outlined its plans to start production of smaller and more cost-effective models ahead of previous estimates. These vehicles will utilize innovative vehicle underpinnings and incorporate features from current models. Tesla emphasizes that the manufacturing will occur on the same production lines as its existing products, minimizing the need for hefty capital expenditures. While CEO Elon Musk provided limited details about the new vehicles, he anticipates the commencement of production between late this year and the second half of next year. Despite the positive market response, shares of Tesla remain down by over 40% for the year.
