Tesla reported a rebound in first-quarter performance, with profits rising as vehicle sales recovered from a steep decline in 2025.
The company posted $477 million in profit, up 17% year over year, with earnings per share at 13 cents. On an adjusted basis, EPS reached 41 cents, beating Wall Street expectations of 36 cents.
Revenue climbed to $22.39 billion, driven by a 16% increase in automotive sales.
Despite the improvement, both revenue and profits remain well below previous highs, as Tesla faces growing competition from European and Chinese automakers. It also lost its position as the world’s largest EV maker to China’s BYD.
Elon Musk continues to shift focus away from car sales, highlighting Tesla’s push into autonomous ride services. Robotaxi usage doubled compared to the previous quarter, with operations now active in San Francisco and several Texas cities, including Austin.
The company is also advancing its robotics ambitions. Musk announced plans for a new Texas factory to produce Optimus robots, targeting a potential annual capacity of 10 million units.
He described Optimus as potentially Tesla’s most important product, possibly even the biggest product ever created.
Tesla has also begun producing its Cybercab vehicles, designed without pedals or steering wheels. Musk added that a new manually driven Roadster could be unveiled within the next month.
The company is increasing investment to support this transition, spending $2.5 billion in capital expenditures during the quarter, up 67% year over year, with further increases expected.
Shares dipped 1% in after-hours trading.