New york: Tesla reported first-quarter earnings above analyst estimates Wednesday, as the electric vehicle maker said it continued investing heavily in artificial intelligence (AI), robotaxi services, and battery production infrastructure. The company stated that net income per share came in at $0.41 in the January-March period, surpassing analyst expectations.
According to Anadolu Agency, total revenue for the company rose 16% to $22.39 billion from $19.34 billion a year earlier. Tesla posted operating income of $941 million and net income of $477 million in the first quarter, with its total gross margin improving to 21.1% from 16.3% a year earlier.
In its First Quarter 2026 Update, Tesla highlighted its progress in constructing the infrastructure and AI software supporting its robotaxi and future robotics businesses. The update also detailed the ramping of additional AI compute, battery, and battery-material factories, alongside preparations for production lines for Megapack 3, Cybercab, and the Tesla Semi.
The company announced the launch of unsupervised robotaxi rides in Dallas and Houston in April, approval for its supervised full self-driving (FSD) system in the Netherlands, and commencement of lithium, cathode, and LFP production ramp-ups. Tesla also noted plans to begin preparations for its first large-scale Optimus factory in the second quarter.
Tesla reported first-quarter vehicle deliveries totaling 358,023 units, marking a 6% increase year-on-year, while production rose 13% to 408,386 vehicles. Additionally, the company deployed 8.8 gigawatt-hours of energy storage during the quarter and concluded March with $44.74 billion in cash, cash equivalents, and short-term investments.
Tesla shares went up approximately 4% in after-hours trading Wednesday. However, over the past year, Tesla has encountered increasing pressure as competitors introduced more affordable and technologically advanced electric vehicles, posing a challenge to the company's aging model lineup.
The automaker has also dealt with consumer backlash linked to CEO Elon Musk's involvement in the Trump administration and his polarizing political statements and support for far-right figures. Tesla shares have underperformed all other megacap stocks this year, dropping 14% through Wednesday's close. Meanwhile, its core automotive business continues to face strain from intensifying global competition, including from Chinese firms BYD and Xiaomi.