Tesla reported stronger-than-expected earnings for the first quarter, with auto sales increasing 16% YoY. Meanwhile, the company also forecasted higher spending than previously anticipated, causing shares to fall in premarket trading.
In its auto segment, Tesla’s revenue increased by 16% to $16.2 billion from $14 billion a year earlier. The company also confirmed that it plans to offer “more affordable trims” of its Model Y SUV and Model 3 sedans.
In the first quarter, Tesla produced over 408,000 vehicles, delivered over 358,000 vehicles and deployed 8.8 GWh of energy storage products.
Capital expenditures increased by 67% in the quarter, reaching $2.49 billion from $1.49 billion a year earlier.
In its energy segment, which sells solar installations and a variety of battery energy storage systems, Tesla reported $2.41 billion in revenue for the quarter, a 12% decrease from $2.73 billion in the same period last year.
During the post-earnings call, CEO Elon Musk stated that he cannot predict Tesla’s production rate for its Optimus robot in 2026. “Optimus is a completely new product with a completely new production line. It’s just literally impossible to predict,” Musk said, adding that production would likely be “quite slow at first.”
Musk also highlighted a cautious approach to Tesla’s initiatives for unsupervised autonomous driving and robotaxis, cautioning that the income from these ventures will not be significant this year.
Tesla shares fell 3% before the bell following the announcement.
By CEO NA Editorial Staff
