Jump to content

Tesla share price surges after Q1 results

Recommended Posts

Tesla, the first of the Magnificent 7 to report earnings, surged after it announced plans to build more affordable electric vehicles (EV).

Electric VehicleSource: Getty Images

Written by: Axel Rudolph FSTA | Senior Financial Analyst, London
Publication date: 

Tesla share price surges after Q1 results

Tesla, the first of the Magnificent 7 to report earnings, surged after it announced plans to build more affordable electric vehicles (EV).

New affordable model plans offset earnings miss

Tesla shares surged in after-hours trading as the electric vehicle maker announced plans to accelerate the launch of new affordable EV models, despite reporting first quarter (Q1) earnings that missed Wall Street estimates.

For the Q1 of 2024, Tesla reported revenue of $21.3 billion, down 9% year-over-year, attributed to reduced vehicle average selling prices and a decline in deliveries. Analysts had expected revenue of $22.15 billion.

Adjusted earnings per share (EPS) came in at $0.45, slightly below the consensus estimate of $0.46.

Investors cheer plans for cheaper models

In a statement accompanying its Q1 2024 earnings report, Tesla said it plans to launch new models, including more affordable EVs, ahead of its previously communicated start of production in the second half of 2025.

"These new vehicles, including more affordable models, will utilize aspects of the next generation platform as well as aspects of our current platforms, and will be able to be produced on the same manufacturing lines as our current vehicle line-up," the company stated.

Cost reduction plans trimmed

Tesla acknowledged that this accelerated timeline "may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times."

Gross margins hit by price cuts

Gross margins at Tesla were 17.4% in Q1, down from 19.3% a year ago, reflecting the impact of the company's repeated price cuts on its vehicles to boost demand.

Tesla stock price: technical analysis

Despite the earnings miss, Tesla shares surged 6.3% to around $153 in after-hours trading following the release of its Q1 report and new EV model launch plans with these now showing a pre-market price of around $164.

Tesla share price pre-market chartSource: Google Finance

Tesla had seen its stock price fall more than 43% so far in 2024 amid concerns about pricing pressure and layoffs prior to the Q1 report.

Tesla weekly candlestick chart

Tesla Weekly candlestick chartSource: TradingView

For the July 2023 to April 2024 downtrend to be questioned, a bullish reversal would need to take the Tesla share price to above its late-March high at $184.25 on a weekly chart closing basis. While this is not the case, the Tesla share price remains in a downtrend as a series of lower highs and lows can be made out on the weekly chart.



This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • A friend talked about this project to me sometime past, just checked it out again .. nice features especially for game developers to be able to organize in-game objects
    • Elliott Wave Analysis Indices: Elliott Wave Analysis Indices: SP 500 & NASDAQ v of (v) of iii) of 1 of (5) of 3) of I.  NVDA Earnings has been the center of attention late in the last session and has created volatile intraday price action, however we are still on track for all Elliott wave counts, that is looking for the top of Wave iii).  The European and Asia indices will track the US indices on an intraday basis, so they too are in much the same Elliott wave patterns. Video Chapters  00:00 SP 500 (SPX), SPY ETF 08:45 NASDAQ (NDX), QQQ ETF 12:04 Russell 2000 (RUT) IWM 13:18 DAX 40 (DAX) 16:57 FTSE 100 UKX (UK100) 18:11 S&P/ASX 200 (XJO) 24:06 End Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge      
    • Currently, Bitget wallet stands as one of the most suitable decentralised wallets. It is built with everything incorporated into it, it is the hub of a handy suite of tools that cater to every crypto enthusiast.  It is interesting to note that it has been over 6 years since the platform commenced rendering crypto services. In commemoration of its 6th anniversary, an event has been set up to let its users earn some good amount and merch along with.  The criteria for participation is relatively easy. You just need to join to win exclusive merch, firstly by following @BitgetWallet while adding a RT + Comment #BitgetWallet6Years’’ Similarly, you can give insightful feedback about Bitget Wallet and stand a chance to win Bitget exclusive merch like T-shirt, Cap, Hoodie and Wristband. I will be jumping on this event too. Such an easy peasy way to earn.
  • Create New...