By Zaheer Kachwala and Siddarth S (Reuters) -Tesla shares gained more than 2% on Thursday after CEO Elon Musk vowed to launch long-awaited cheaper models in the first half of 2025 and start testing an autonomous ride-hailing service in June.

In 2024, Tesla (TSLA) ’s electric vehicle deliveries fell for the first time in the company’s 21-year history. But according to CEO Elon Musk, that’s no cause for concern because Tesla’s future is all about A.I. and other non-automobile businesses. And investors seem to buy the argument—for now.

The Detroit carmaker is creating a domestic supply base to make EVs cheaper and profitable aided by Kurt Kelty, who landed Tesla’s top battery supplier in its early days.

Tesla reported fourth-quarter revenue and adjusted profit below analysts' estimates. Shares initially fell and then rose after the results' release.

Tesla shares have become a vehicle for investors to wager on Musk himself, rather than the company. That has advantages, but also poses risks.