Tesla shares surged 11% throughout premarket buying and selling on Wednesday after CEO Elon Musk mentioned the electrical car firm plans to start manufacturing of latest reasonably priced EV fashions by early 2025.

Musk’s feedback got here throughout Tesla’s earnings name on Tuesday after the corporate reported disappointing first-quarter numbers. Income fell 9% year-over-year, its steepest annual drop since 2012.

The corporate beforehand anticipated to start out manufacturing of the brand new EV fashions within the second half of 2025.

Tesla reported 45 cents in adjusted earnings per share on $21.3 billion in income, falling wanting the 51 cents EPS and $22.15 billion in gross sales analysts anticipated, per LSEG.

Income fell from $23.3 billion a 12 months earlier than and from $25.17 billion within the earlier quarter.

Analysts of Financial institution of America mentioned in an investor be aware Wednesday that Tesla’s first-quarter outcomes and management’s commentary “addressed key considerations” and “revitalized the expansion narrative,” prompting them to improve the inventory from impartial to purchase whereas sustaining their $220 value goal.

Additionally they expressed bullish optimism that Tesla demonstrated a constructive enterprise outlook because it prepares to launch new car fashions and license its driver help system.

“Within the near-term the tide in information circulate seems to counsel the chance to the inventory is skewing extra positively,” the analysts wrote.

UBS analysts on Tuesday reiterated their impartial ranking of Tesla inventory and lowered their value goal to $147 from $160, saying they continue to be skeptical of the corporate’s speak.

“More and more, TSLA is a play on autonomy, and whereas progress is being made, we’re cautious on near-term viability,” they wrote in a be aware. “We see restricted development for present lineup and lack of readability on what these ‘new automobiles’ might deliver.”

— CNBC’s Michael Bloom contributed to this report.