Tesla on Wednesday reported 16% revenue growth in the first quarter of 2026, generating $22.39 billion, slightly missing Wall Street expectations of $22.64 billion.
In the earnings report, Tesla said adjusted earnings per share came in at 41 cents, ahead of the 37 cents that analysts were looking for in the LSEG survey. TSLA was up more than 4% in extended trading as of press time, according to data from TradingView.
Regarding cryptocurrencies, Tesla’s earnings report did not reveal any buying or selling activity for Bitcoin. The “book value of digital assets” collapsed from about $1.008 billion at the end of the fourth quarter of 2025 to $786 million, due to fair value adjustments caused by falling Bitcoin prices.
Tesla’s total revenue reached $19.3 billion a year ago. In the first quarter, its net income rose to $477 million, or 13 cents per share, from $409 million, or 12 cents a year earlier.
However, TSLA has collapsed 14% since the start of 2026 through Wednesday’s close, making Tesla the weakest performer among the giant names. Amazon shares are up 11% this year, Alphabet shares are up 8%, Nvidia has added about 9%, and the S&P 500 is up about 4%.
The company’s core automotive business carries. Automotive revenues rose 16% to $16.2 billion from $14 billion a year ago. Tesla also said in its earnings call that it plans to offer “more affordable trims” for the Model Y SUV and Model 3 sedan. This comes as the company’s lineup advances and competitors continue to offer newer, cheaper and more advanced vehicles. Chinese companies like BYD and Xiaomi are part of this pressure.
Earlier this month, Tesla announced 358,023 vehicle deliveries in the first quarter. This was lower than the previous quarter and about 6% higher than the previous year. The company also recorded annual declines in the past two years. In the same quarter last year, part of the weakness came from “losing several weeks of production” as Tesla upgraded its Model Y factory lines.
There is also consumer backlash over businesses linked to Elon Musk’s work with the Trump administration, along with his political rhetoric and support for far-right figures.
Meanwhile, the company said its gross vehicle profit margin, excluding sales of environmental regulatory credits, was 19.2%. That was higher than in any quarter last year. Tesla said the result was supported by a higher average selling price and “lower average cost per vehicle due to lower material costs.”
Tesla is raising spending on Optimus and self-driving while electric vehicle sales still generate most of the revenue
Outside of cars, Tesla’s energy segment, which includes solar products and battery storage systems, had revenue of $2.41 billion, which represented a 12% decline from $2.73 billion a year earlier. Meanwhile, Tesla’s capital expenditures jumped 67% to $2.49 billion from $1.49 billion in the same quarter last year.
Elon is trying to direct attention toward self-driving technology and humanoid robots. Tesla is testing a small number of self-driving vehicles in its ride-hailing service in Texas, but the company gets most of its revenue from electric vehicle sales and does not sell a robotaxi-ready vehicle.
In January, Tesla He said It will end production of the Model S and Model
In today’s earnings report, Tesla said, “Preparations for our first full-scale Optimus factory will begin soon in the second quarter,” adding that the “first generation line” is slated to produce 1 million robots annually.
Tomas Montero, analyst at Investment.com One Tesla investor said the “real story” was cash flow, even as Tesla faces “many structural and macro challenges in its core business.”
“In a world where EV demand and regulatory credits remain difficult to scale, a shift towards a more diversified and service-intensive revenue base should help support margins over the long term. Furthermore, the combination of rising FSD subscriptions and a gradually improving regulatory backdrop should continue to sustain the next innovation narrative,” he said.
