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Tesla shares have had a rough start to 2024, but are surging following its first quarter earnings report on Tuesday where the electric vehicle manufacturer said it wanted to accelerate plans for offering more affordable models. The stock was up about 13 percent in early morning trading.

Teslas (TSLA) first quarter results were disappointing, with revenues down 9 percent from 2023 to $21.3 billion and net income down 55 percent to $1.1 billion. Its stock had fallen more than 40 percent so far in 2024 prior to the first quarter report.

But investors seem encouraged by the companys plans to accelerate the launch of new models, including more affordable options. Tesla previously had targeted the second half of 2025, but said it was moving up those plans to early 2025 or late 2024.

These new vehicles, including more affordable models, will use aspects of the next-generation platform as well as aspects of our current platforms, and well be able to produce on the same manufacturing lines as our current vehicle lineup, Tesla CEO Elon Musk said. So its not contingent upon any new factory or massive new production line.

Morningstar analyst Seth Goldstein raised his fair value estimate for Tesla shares to $200 following the first quarter results and views the shares as undervalued.

Teslas affordable vehicles are a catalyst for shares, Goldstein wrote in a note to clients. Affordable vehicles should eventually generate a majority of its total deliveries. We continue to forecast that Tesla delivers around 5 million vehicles by 2030.

Musk also shared plans about the companys progress towards autonomous vehicles and said it planned to showcase a robotaxi or cybercab in August.

I mean if somebody doesnt believe Tesla is going to solve autonomy, I think they should not be an investor in the company, Musk said.

Tesla has faced challenges as demand has slowed for EVs across the industry and competition from Chinese automakers increased. Earlier this month, Tesla said it would reduce its global workforce by more than 10 percent and two executives left the company.

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Why Teslas Stock Price Is Surging Heres What Elon Musk Said - Bankrate.com