Tesla stock surges as EV maker will 'accelerate' the launch of cheaper cars

Tesla (TSLA) stock gained 12% on Wednesday, its biggest one-day gain of 2024, after the company said it would accelerate the launch of more affordable vehicles, countering reports earlier this month the company would scrap these plans.

"We have updated our future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025," Tesla said in its first quarter shareholder release late Tuesday.

On the company's earnings call, CEO Elon Musk said the timelines for new vehicles could be in early 2025 if not later this year. Tesla declined to say when the cheap EV will debut, though Musk did say the company would talk more about these vehicles on Aug. 8, the day the robotaxi will be revealed.

"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," Tesla said in the release.

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