Tesla (TSLA) earnings were a disaster.

Yet, the stock is up about $11.77 a share after-hours.

Its adjusted EPS of 45 cents missed expectations for 51 cents. Revenue of $21.3 billion was also below expectations for $22.15 billion. 

“The drop in sales was even steeper than the company’s last decline in 2020, which was then due to disrupted production during the COVID pandemic,” as noted by CNBC. “In its shareholder deck, Tesla reiterated a pessimistic outlook for 2024, telling investors that “volume growth rate may be notably lower than the growth rate achieved in 2023.”

In addition, free cash flow went negative with a deficit of $2.53 billion—which it attributes to a $2.7 buildup of inventory and a $1 billion in capex spending on AI infrastructure. A year ago, it was free cash flow positive with $441 million.

Fortunately, Tesla did mention that it’s accelerating the launch of newer vehicles, including more affordable models, which is why the stock is up this afternoon.