Tesla’s Q1 net income down 55% year over year [Video]

Tesla’s first-quarter net income plummeted 55 per cent, but its stock price surged in after-hours trading Tuesday as the company said it would accelerate the production of new, more affordable vehicles.

The Austin-based company said it made $1.13 billion US from January through March compared with $2.51 billion US in the same period a year ago.

Investors and analysts were looking for some sign that Tesla will take steps to stem its stock’s slide this year and grow sales.

The company did that in a letter to investors Tuesday, saying that production of smaller, more affordable models will start ahead of previous guidance.

WATCH | This scholar tested the cost of driving an EV versus gas: Where you live and how much you drive each day matters when it comes to the cost-effectiveness of an electric vehicle, compared to gas. A new UBC study crunches the numbers.

The smaller models, …