In its first-quarter report released Tuesday local time, Tesla posted revenue of $22.39 billion, below the market estimate of $22.6 billion. Operating profit was $941 million, with an operating margin of 4.2%. Free cash flow totaled $1.44 billion, remaining positive.
Earlier sales results had disappointed. Tesla delivered 358,023 vehicles in the first quarter, up 6.3% from a year earlier but below Wall Street expectations. Reuters reported that the end of tax incentives and intensifying competition in lower-priced EVs have weighed on demand.
After the earnings release, attention shifted to Tesla’s spending plans. The company raised its 2026 capital-expenditure outlook to more than $25 billion and said initial production of its self-driving taxi, the “Cybercab,” will begin this year. As the EV business slows, Tesla pointed to energy storage as a growth driver.
Tesla also warned that as large-scale investment centered on AI and robotics accelerates, free cash flow could turn negative again over the remainder of the year.
The company is also moving to expand its robotaxi business. It said the service, launched last year in Austin, Texas, has recently been extended to Dallas and Houston, and that it is preparing to expand to five additional cities in Arizona, Florida and Nevada.
* This article has been translated by AI.
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