Tesla shares surged in premarket trade by more than 13% in the early hours of Wednesday, overshadowing the company’s dismal profits. Even as the automaker announced faster plans to develop less expensive EV models a major factor in its high valuation In contrast to $23.33 billion a year earlier, the corporation reported sales of $21.3 billion for the three months that ended in March on Tuesday. LSEG data showed that analysts had projected $22.15 billion.

Due to further price reductions, Tesla’s average revenue per vehicle delivered in the quarter decreased by over 5% from a year earlier to $44,926. On Wednesday, there are more earnings from the U.S. Big Tech industry to review. Meta Platforms, the parent company of Facebook, is expected later. Microsoft and Alphabet, the parent company of Google, are expected on Thursday.

Using its current platforms and production lines, Tesla announced on Tuesday that it will deliver “new models” by early 2025. This move marks a retreat from the company’s more ambitious intentions to manufacture an all-new model projected to cost $25,000. Tesla faced with tough competition and dwindling sales, promised new goods on a speedier timeframe driving Tesla shares surging in after-hours trading. This was a much-needed lift. Despite Tesla’s first-quarter results falling short of Wall Street’s projections, the company nevertheless saw improvements.

Elon Musk, the CEO, stated that more cheap models would be available and that production would begin in early 2025, but he would not provide any other information about the new cars. That comes well before the deadline Musk had originally set for the introduction of the brand-new, inexpensive Model 2, also known as the Model 2.

According to Tesla, the new models would be constructed using both “aspects” of its present platform and a next-generation platform, utilizing its current manufacturing lines. It warned that this approach would “result in achieving less cost reduction than previously expected,” implying that buyers might have to pay more for the cars than the $25,000 that was originally projected for the Model 2.