Tesla Stock Surges 6% Despite Q1 Miss as Musk Pledges Focus and New Vehicles for 2025
Tesla shares jumped over 6% in pre-market trading on Wednesday, rebounding strongly despite reporting weaker-than-expected Q1 earnings.
The surge follows the company’s announcement of a planned launch of new vehicles in early 2025 and CEO Elon Musk’s pledge to spend more time on Tesla operations.
During the post-earnings call on Tuesday, Musk confirmed he would scale back his involvement in the federal Department of Government Efficiency (DOGE) and reallocate more of his time to Tesla.
“Starting early next month, in May, my time allocation to DOGE will drop significantly,” Musk said. “I’ll be allocating far more of my time to Tesla.”
Following the announcement, Tesla stock rose 5% in after-hours trading, with momentum carrying into the next morning.
Earnings Miss, but Strategic Plans Ease Investor Worries
Tesla reported Q1 revenue of $19.34 billion, missing Bloomberg’s estimate of $21.43 billion and down from $21.3 billion year-over-year. Adjusted earnings per share came in at $0.27, below expectations of $0.44.
Despite the miss, the market responded positively to Tesla’s forward-looking guidance. The company confirmed that its new line of affordable vehicles is on track for production in the first half of 2025, addressing one of the top investor concerns.
Tesla also reaffirmed plans to begin volume production of its long-awaited Robotaxi in 2026, with testing already underway.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
