New affordable EV models on the horizon boost Tesla's stock price.

• On Wednesday morning, Tesla's shares rose over 10% following CEO Elon Musk's announcement that the company intends to commence production of new affordable electric vehicle models by early 2025.
• During Tesla's earnings call on Tuesday, Musk made comments after the company reported a 9% year-over-year decline in revenue, which was its steepest annual drop since 2012.
• The company initially anticipated beginning production of the new EV models in the second half of 2025.

On Wednesday morning, shares of Tesla surged more than 10% after CEO Elon Musk announced that the company plans to begin production of new affordable electric vehicle models by early 2025.

During Tesla's earnings call on Tuesday, Musk made comments about the company's disappointing first-quarter numbers, which saw a 9% year-over-year decline in revenue, marking the steepest annual drop since 2012.

The company initially anticipated beginning production of the new EV models in the second half of 2025.

Tesla's adjusted earnings per share were 45 cents on $21.3 billion in revenue, missing the predicted 51 cents in earnings per share and $22.15 billion in sales, according to LSEG.

In the previous quarter, revenue decreased from $25.17 billion to $23.3 billion.

Tesla's first-quarter results and leadership's commentary "addressed key concerns" and "revitalized the growth narrative," prompting analysts of Bank of America to upgrade the stock from neutral to buy while maintaining their $220 price target.

Tesla's positive business outlook was demonstrated through its preparation to launch new vehicle models and license its driver assistance system, as expressed by those with bullish optimism.

The analysts wrote that in the near-term, the news flow tide suggests a more positive risk to the stock.

On Tuesday, UBS analysts maintained their neutral stance on Tesla stock and reduced their price forecast from $160 to $147, expressing their doubts about the company's claims.

"While TSLA is making progress towards autonomy, we are cautious about its near-term viability. We also see limited growth potential in its current lineup and lack clarity on the benefits of these 'new vehicles'."

— CNBC's Michael Bloom contributed to this report.