Tesla Inc (NASDAQ:TSLA) stock rose 11.86% (As on April 24, 11:16:29 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the first quarter of FY 24. However, the company highlighted that the production of the new, affordable EV models could be preponed, which means ahead of the previously communicated start of production in the second half of 2025. Tesla had earlier guided for production of low cost models to begin in the second half of 2025. Musk also guided for Tesla’s sales in 2024 to be higher than that in the year gone by. The electric vehicle manufacturer is working towards increasing production by 50% versus 2023 before it invests in new lines. The operating income decreased YoY to $1.2B in Q1, resulting in a 5.5% operating margin. YoY. Quarter-end cash, cash equivalents and investments in Q1 was $26.9B. The sequential decrease of $2.2B was a result of negative free cash flow of $2.5B, driven by an inventory increase of $2.7B and AI infrastructure capex of $1.0B in Q1.

In addition, the company also spoke about the recent job cuts at Tesla, calling it necessary to reorganise the company for the next phase of growth. The company plans to cut more than 6,000 jobs across Texas and California as part of the strategy to slash more than 10 per cent of the global workforce. The layoffs will save Tesla $1 billion annually.

TSLA in the first quarter of FY 24 has reported the adjusted earnings per share of 45 cents, missing the analysts’ estimates for the adjusted earnings per share of 51 cents, according to projection of a survey of analysts by LSEG. The company had reported 9 percent decline the adjusted revenue to $21.3 billion in the first quarter of FY 24, missing the analysts’ estimates for revenue of $22.15 billion. Tesla’s revenue fell due to a decline in vehicle deliveries and the price cuts undertaken by the company, reducing the average selling price of the vehicle. Last week, the company cut the US prices of its Model Y, Model X and Model S vehicles by $2,000 each. However, the company expressed confidence that Tesla will remain cash positive despite these price cuts. Volumes also fell sequentially due to a early phase of the Model 3 ramp-up at Fremont, factory shutdowns in Berlin and planned shutdowns in China.