Tesla shares surged 15% on Wednesday morning after CEO Elon Musk said the electric-vehicle company plans to begin production of new affordable EV models by early 2025.

Musk’s comments came during Tesla’s earnings call on Tuesday after the company reported disappointing first-quarter numbers. Revenue fell 9% year over year, its steepest annual decline since 2012.

The company previously expected to start production of the new EV models in the second half of 2025.

Tesla reported 45 cents in adjusted earnings per share on $21.3 billion in revenue, falling short of the 51 cents in expected earnings per share and $22.15 billion in expected sales, per LSEG.

Revenue dropped from $23.3 billion a year before and from $25.17 billion in the previous quarter.

Analysts of Bank of America said in an investor note Wednesday that Tesla’s first-quarter results and leadership’s commentary “addressed key concerns” and “revitalized the growth narrative,” prompting them to upgrade the stock from neutral to buy while maintaining their $220 price target.

They also expressed bullish optimism that Tesla demonstrated a positive business outlook as it prepares to launch new vehicle models and license its driver assistance system.

“In the near-term the tide in news flow appears to suggest the risk to the stock is skewing more positively,” the analysts wrote.

UBS analysts on Tuesday reiterated their neutral rating of Tesla stock and lowered their price target to $147 from $160, saying they remain skeptical of the company’s talk.

“Increasingly, TSLA is a play on autonomy, and while progress is being made, we are cautious on near-term viability,” they wrote in a note. “We see limited growth for current lineup and lack of clarity on what these ‘new vehicles’ could bring.”

— CNBC’s Michael Bloom contributed to this report.

Klarna on Wednesday announced a global partnership with Uber to power payments for the ride-hailing giant’s Uber and Uber Eats apps.

The partnership will see the Swedish financial technology firm added as a payment option in the U.S., Germany, and Sweden, Klarna said in a statement. 

In the U.S., Germany, and Sweden, Klarna will roll out its “Pay Now” option, which lets customers pay off an order instantly in one click, in the Uber and Uber Eats apps. Users will be able to track all their Uber purchases in the Klarna app.

The company will also offer an additional payment option for Uber users in Sweden and Germany which allows users to bundle purchases into a single, interest-free payment that gets taken out of their monthly salary.

Interestingly, the company isn’t rolling out installment-based buy now, pay later plans, arguably its most popular service offering, on Uber’s platforms — only immediate payments and monthly payments.

Sebastian Siemiatkowski, CEO and Co-Founder of Klarna, said in a statement Wednesday that the deal represented a “significant milestone” for the company.

“Consumers can Pay Now quickly and securely in full, which already accounts for over one third of Klarna’s global volumes, and more easily manage their finances in one place,” Siemiatkowski said.

Klarna declined to disclose financial terms of its deal with Uber.  

The firm recently launched a monthly subscription plan in the U.S. to lock in “power users” ahead of its anticipated IPO. 

The product, called Klarna Plus, costs $7.99 per month, and enables users get their service fees waived, earn double rewards points and access curated discounts from partners including Nike and Instacart. 

Last year, Klarna reported its first quarterly profit in four years after cutting its credit losses by 56%.

The company posted operating profit of 130 million Swedish krona in the third quarter of 2023, swinging to a profit for a loss of 2 billion Swedish krona in the same period a year earlier.

By just about every measure, Tesla’s first-quarter earnings report on Tuesday was dreary. The company missed estimates on the top and bottom lines. Revenue fell by 9% year over year, the worst decline since 2012. Auto sales dropped 13% from the same period in 2023. Free cash flow turned negative.

But CEO Elon Musk downplayed most of that and suggested investors focus their attention elsewhere.

Rather than dwell on quarterly financials or the massive restructuring announced last week, Musk reiterated his vision of Tesla as a company that’s building artificial intelligence software to turn existing cars into self-driving vehicles, dedicated robotaxis that will make money for their owners and a driverless transportation network.

This is the Tesla Musk is selling to Wall Street, and he’s telling anyone with doubts to stay away.

“If somebody doesn’t believe Tesla’s going to solve autonomy, I think they should not be an investor in the company,” Musk said on the earnings call. He added, “We will, and we are.”

Tesla shares soared 13% in extended trading Tuesday after the earnings report, despite the disappointing results. Some of the optimism was tied to Tesla’s announced plans to start production of new affordable electric vehicle models in “early 2025, if not late this year.”

The stock’s rally picked up steam during the earnings call as Musk veered to the future. He casually mentioned that the company’s robotaxi, which he has long said is coming, will be called the CyberCab. In a shareholder deck that Tesla published before the call, the company featured a “preview of ride-hailing in the Tesla app.”

Musk also talked up a driverless network that’s like Uber with Tesla autonomous vehicles.

“When the car is not moving,” Musk said, “there’s potential to actually run distributed inference,” through the hardware that’s in the cars.

Musk has been making these kinds of pronouncements for years.

In 2015, Musk told shareholders that Tesla cars would achieve “full autonomy” within three years. They didn’t. In 2016, Musk said a Tesla car would be able to make a cross-country drive without requiring any human intervention before the end of 2017. That hasn’t happened either.

And in 2019, on a call with institutional investors that would help him raise more than $2 billion, Musk said Tesla would have 1 million robotaxi-ready vehicles on the road in 2020, able to complete 100 hours of driving work per week each, making money for their owners.

The robotaxis would make Tesla a company worth $500 billion, he said at that time. Tesla’s market cap is around that mark now and even topped $1 trillion in 2021, but the company has never managed to deliver on its driverless promises.

NBC News reported recently that the company hasn’t even sought permits that would allow it to test and operate robotaxis in three states, including California and Nevada, where it employs thousands of people.

Separately, the California Department of Motor Vehicles has filed a legal complaint against Tesla, saying it engaged in false advertising and marketing concerning its driver assistance systems — Autopilot and Full Self-Driving (FSD) systems. Autopilot is the standard, and FSD costs $99 per month or $8,000 upfront. Both require human drivers at the wheel, ready to steer or brake at any time. Tesla is defending itself in court against the accusations.

Musk owns a 20.5% stake in Tesla, ​​more than 715 million shares, as of March 31, according to the company’s recent proxy filing. He’s used around 238.4 million of those shares as collateral to secure personal debt. In January, he began angling for even more control of Tesla.

“I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control,” he wrote in a post on X. “Enough to be influential, but not so much that I can’t be overturned.”

Musk created a new startup, xAI, to develop AI products to rival those from Microsoft-backed OpenAI. Before starting xAI, he was already serving as CEO of Tesla and SpaceX, and was technology chief at X, which he owns. He’s also the founder of brain computer interface company Neuralink and tunneling venture The Boring Co.

Alex Potter, an analyst at Piper Sandler, asked Musk on the earnings call if he’d “come up with any mechanism” to ensure he would have the requisite level of voting control at Tesla because, if not, “the core part of the thesis could be at risk.”

“No matter what, even if I got kidnapped by aliens tomorrow, Tesla will solve autonomy, maybe a little slower but it would solve autonomy for vehicles at least,” Musk said. “I don’t know if it would win with respect to Optimus, or with respect to future products, but there’s enough momentum for Tesla to solve autonomy, even if I disappeared, for vehicles.”

But he was quick to tell investors that the company needs him to achieve his loftiest goals.

“If we have a super sentient humanoid robot that can follow you indoors, and that you can’t escape, we’re talking Terminator-level risk yeah I’d be uncomfortable if there’s not some meaningful level of influence over how that is deployed,” he said.