Tesla Stock Price: Elon Musk’s Tesla stock price is trading higher after dismal quarterly performance. The company’s recent quarterly reports showed its first quarterly revenue decline in nearly four years, as well as a lower-than-expected profit.

Tesla (TSLA), listed on Nasdaq, is trading around $161, up about 11% from the previous day’s close.

The surge in the Tesla stock price could be for one major reason – Tesla is accelerating the launch of new models. Earlier it was communicated that start of production of affordable cars would begin in the second half of 2025. This means that Tesla’s affordable cars may hit the road quicker than expected.

As far as vehicle deliveries this year are concerned, this is what Tesla says in its quarterly presentation – In 2024, our vehicle volume growth rate may be notably, lower than the growth rate achieved in 2023, as our teams work on the launch of the next generation vehicle and other products

Tesla’s stock price has dropped more than 50% since its peak in July 2023 and over 43% YTD. Tesla’s Model 2 is the much-awaited car for the global consumers. “Anyone who is thinking about Tesla’s stock should drive FSD version 12.3. It’s impossible to understand the company if you don’t do this,” said Musk.

Tesla has had a rough week, with significant layoffs, management departures, price cutbacks, and the postponement of a highly anticipated meeting with the Indian Prime Minister Narendra Modi.

Also, Tesla’s board has asked shareholders to vote again on the same $56 billion package that was voided by a Delaware court earlier this year.

Tesla expects to incur expenditures of more than $350 million in the second quarter as a result of the mass layoffs that began last week, the automaker said in a regulatory filing on Wednesday.

The electric vehicle manufacturer also stated that it anticipates capital expenditures to top $10 billion in 2024 and to range between $8 billion and $10 billion in subsequent years.

Some of the questions that shareholders asked during their Q1 2024 Earnings.

  • The recent reports that the low-cost Tesla (“Model 2”) is being put on hold in favor of the Robotaxi initiative seem to be a huge/risky gamble. Could you please share thoughts on why you feel this is the right approach, to settle concerns of investors such as myself?
  • What are the current plans regarding the timeline of the Model 2?
  • Will the Model 2 be unveiled with RoboTaxi on August 8th?
  • Is Tesla’s 20M unit target achievable without a mass-market consumer vehicle (i.e. non-Robotaxi Model 2?)

At best shareholders and customers see the Cybertruck as a whimsical and impractical vehicle. Explain why Robotaxi is at this point in the development of FSD a better option/risk than the model 2/$25k car.

(With inputs from wires)