Tesla (TSLA) plans to accelerate production of lower-priced models in the face of slowing demand, news of which pushed shares up 13%.

Tesla's first-quarter earnings, sales and margins all missed expectations, according to its first-quarter earnings report. To stimulate demand and support other visionary projects such as self-driving taxis and humanoid robots, the company plans to introduce low-priced models.

As a result, the company announced an acceleration of its plans to launch new models, with production expected to begin as early as this year, well ahead of the original plan of 2025, as a direct response to the slowdown in global demand for electric vehicles.

Tesla will reportedly use existing production lines to produce the new model in its current factory in order to improve capacity utilisation and expand prudently.

Earlier this month, Tesla made its largest-ever layoffs, eliminating more than 10 per cent of its positions. In addition, two senior executives left the company, and head of investor relations Martin Vicha announced his resignation during the earnings call.