Tesla shared its first-quarter financial results with its stockholders on Tuesday and said that it has sped up the launch of new, more affordable electric cars.

Tesla reported its biggest revenue decline in 12 years, with a 9% drop from earnings last year. The company made $21.3 billion in Q1 2024, down from $23.3 billion at the same time last year and $25.2 billion last quarter.

On a Tuesday call announcing the earnings, Tesla CEO Elon Musk offset news of the decline with an update that the company will start producing new, more affordable electric cars in “early 2025 if not late this year.” Tesla stock surged upon the news.

Related: Tesla Sales, Deliveries Drop for First Time Since 2020

Tesla’s cheapest offering at the moment is its $38,990 Model 3. The company announced an upgraded Model 3 Performance starting at $52,990 ahead of its earnings call on Tuesday.

Tesla Model 3. Photo Credit: Na Bian/Bloomberg via Getty Images

The announcement accelerates the timeline to cheaper electric vehicles (EVs). Tesla previously stated that it would start producing more affordable EVs in the second half of 2025.

In a slide deck shared with investors, Tesla stated that the new EVs, including the cheaper models, will incorporate familiar Tesla features into a new, next-generation platform, but the company’s overall growth rates could be “notably lower” this year compared to last year as its teams work on it.

Related: Elon Musk Informs Tesla Staff That Layoffs Will Affect at Least 14,000 Employees — Read the Leaked Email

Musk emphasized to shareholders that Tesla is more than just an auto company, arguing that it should be considered more like an AI tech company.

“The way to think of Tesla is almost entirely in terms of solving autonomy, and being able to turn on that autonomy for a gigantic fleet,” Musk said.

Tesla has a humanoid robot in development, Musk told investors, and it could be able to help in Tesla factories by the end of this year.

Related: Elon Musk Reveals When Tesla Will Release Its First Robotaxi

Earlier this month, Musk posted on X that the Tesla robotaxi, a fully autonomous, self-driving electric car, will arrive this August.

Tesla also laid off at least 14,000 employees last week.

Categorized in: