Tesla announced plans to launch lower-cost electric vehicles in early 2025 and test a paid autonomous ride-hailing service in June.

These announcements came during Tesla’s quarterly earnings release, where the company did not meet Wall Street’s profit and revenue expectations.

Following the updates, Tesla’s shares rose by 4% as it revealed cost-cutting measures and progress on new models.

CEO Elon Musk indicated that autonomous car service tests would begin in Austin, Texas, focusing on safety.

The company plans to utilize its existing EV platform to manufacture more affordable vehicles, with commercial production of robotaxi units at its Texas factory set for 2026.

Tesla’s profit margin on vehicle sales decreased to 13.59%, down from 17.05% in the fourth quarter.