<p>Tesla shares surged 10% on Wednesday after the electric-car maker eased some worries about growth with a prediction that sales would rise this year and said it would roll out more affordable models in early 2025.</p><p>The news cheered up investors who were bracing for the worst after a tumultuous week at Tesla that saw big layoffs, executive exits, price cuts and the postponement of a highly touted meeting with the Indian prime minister.</p>.Musk sells the Tesla dream, but don't ask for details.<p>It also helped Wall Street shrug off the company's weak results that included its first quarterly revenue decline in nearly four years and a lower-than-expected profit.</p><p>"First impression for us is CEO Elon Musk is appeasing the market by accelerating new product launches," Jefferies analysts, led by Philippe Houchois, said in a note.</p><p>The company was on track to add nearly $50 billion to its market value, based on premarket movements. Its stock is down 42% so far this year amid fierce competition and falling sales.</p><p>The growth strategy could strengthen shareholder support for a vote in May on the $56 billion compensation package for CEO Elon Musk that was voided by a Delaware court in January.</p><p>Some Tesla investors such as Ross Gerber - president and CEO at Gerber Kawasaki Wealth & Investment Management - had said in recent days that they planned to oppose the package, citing a decline in Tesla's share price and a compromised board.</p><p>Several analysts took Tesla's remarks that its cheaper models would be built using current platforms and production lines meant as a sign it had retreated from more ambitious plans for an all-new model that had been expected to cost $25,000.</p><p>"We read 'more affordable' as potentially de-contented Model Y/Model 3 versions with improvements in software and AI/hardware capability but at lower prices," Morgan Stanley analyst Adam Jonas said.</p><p>Musk declined to provide details of the more-affordable models, and instead spent much of the earnings call on Tesla's efforts to diversify its business with AI, humanoid robots and operating a fleet of autonomous vehicles - all based on software and hardware products it has not yet fully developed.</p><p>"While the details (on the new models) are thin on the ground, this was a clever move by Musk, as it justifies the negative cash flow and the higher capital spend," said Kathleen Brooks, research director at XTB.</p><p>"Unlike many companies that are shrinking capital spend in the current environment, Tesla is going against the grain ... and puts (it) in a strong position as the EV market gets more competitive and price sensitivity increases," Brooks added.</p>
<p>Tesla shares surged 10% on Wednesday after the electric-car maker eased some worries about growth with a prediction that sales would rise this year and said it would roll out more affordable models in early 2025.</p><p>The news cheered up investors who were bracing for the worst after a tumultuous week at Tesla that saw big layoffs, executive exits, price cuts and the postponement of a highly touted meeting with the Indian prime minister.</p>.Musk sells the Tesla dream, but don't ask for details.<p>It also helped Wall Street shrug off the company's weak results that included its first quarterly revenue decline in nearly four years and a lower-than-expected profit.</p><p>"First impression for us is CEO Elon Musk is appeasing the market by accelerating new product launches," Jefferies analysts, led by Philippe Houchois, said in a note.</p><p>The company was on track to add nearly $50 billion to its market value, based on premarket movements. Its stock is down 42% so far this year amid fierce competition and falling sales.</p><p>The growth strategy could strengthen shareholder support for a vote in May on the $56 billion compensation package for CEO Elon Musk that was voided by a Delaware court in January.</p><p>Some Tesla investors such as Ross Gerber - president and CEO at Gerber Kawasaki Wealth & Investment Management - had said in recent days that they planned to oppose the package, citing a decline in Tesla's share price and a compromised board.</p><p>Several analysts took Tesla's remarks that its cheaper models would be built using current platforms and production lines meant as a sign it had retreated from more ambitious plans for an all-new model that had been expected to cost $25,000.</p><p>"We read 'more affordable' as potentially de-contented Model Y/Model 3 versions with improvements in software and AI/hardware capability but at lower prices," Morgan Stanley analyst Adam Jonas said.</p><p>Musk declined to provide details of the more-affordable models, and instead spent much of the earnings call on Tesla's efforts to diversify its business with AI, humanoid robots and operating a fleet of autonomous vehicles - all based on software and hardware products it has not yet fully developed.</p><p>"While the details (on the new models) are thin on the ground, this was a clever move by Musk, as it justifies the negative cash flow and the higher capital spend," said Kathleen Brooks, research director at XTB.</p><p>"Unlike many companies that are shrinking capital spend in the current environment, Tesla is going against the grain ... and puts (it) in a strong position as the EV market gets more competitive and price sensitivity increases," Brooks added.</p>