It is rarely without drama when Elon Musk and co. talks about new models or presents accounts.
Tesla's latest accounts have been anything but encouraging. Both turnover and earnings have fallen, and the negative trend does not seem to reverse immediately.
Still, Tesla's stock rose 15 percent in one day after the surprising news.
In the middle of all the bad numbers, Elon Musk revealed that Tesla will introduce cheaper models sooner than expected. That has given investors much-needed hope, especially after news of failing sales and a planned layoff of 14,000 employees .
Elon Musk even hinted that the new models could arrive at the end of this year, although there is still doubt as to which models will actually be launched.
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Market analyst René Tonder from AutoInc. tells Motor magazine that this is exactly what Tesla needed to correct the stock's slump. Tesla stock has been struggling since the beginning of the year, especially due to a price war in which Tesla has cut prices on several models.
This has reduced the operating margin and led to a quarterly result that was lower than expected.
Additionally, there have been rumors that Tesla might drop their plans for an affordable Model 2 in favor of self-driving robot taxis, which hasn't exactly helped the stock price.
René Tonder also notes that Elon Musk spent much of his time talking about Tesla's self-driving technology and artificial intelligence, emphasizing that Tesla is more than just a car manufacturer.
Despite declining numbers and concerns about future models, Tesla appears to be getting back on track with news of faster launches of smaller and cheaper models. This can be a strategy to generate more sales and restore investor confidence.
However, it's worth noting that Tesla has struggled to meet its timelines in the past, so whether this news will create a lasting effect on the stock price remains to be seen.
Much more Tesla at www.tesla.com/dk
