Tesla reports Q1 profit

Tesla stayed profitable in the first quarter, posting $477 million in net income even as Elon Musk said spending will climb sharply this year. (tesla.com) (cnbc.com) Tesla said first-quarter revenue rose 16% from a year earlier to $22.39 billion, while adjusted earnings per share came in at 41 cents against 37 cents expected by analysts tracked by LSEG. The company also reported $3.9 billion in operating cash flow and $1.4 billion in free cash flow. (tesla.com) (cnbc.com) The quarter came after Tesla said on April 2 that it produced 408,386 vehicles and delivered 358,023, leaving production ahead of deliveries again. CNBC reported Tesla’s stock initially rose about 4% in extended trading before giving up gains during the earnings call. (tesla.com) (cnbc.com) The pressure point was spending. Bloomberg reported Tesla lifted its 2026 capital-expenditure forecast to more than $25 billion, up from a prior outlook of more than $20 billion, as Musk told investors the company would spend “substantially” more on future products and artificial intelligence infrastructure. (bloomberg.com) (finance.yahoo.com) Tesla’s shareholder update tied that spending to new factory work, more artificial-intelligence compute, and preparations for Megapack 3, Cybercab and Tesla Semi production. The company also said it was building out the software and infrastructure behind its robotaxi and robotics businesses. (tesla.com) That leaves investors weighing two businesses at once: Tesla’s current car-and-energy operation, which generated cash this quarter, and Musk’s push to value the company around robotaxis, humanoid robots and artificial intelligence. Ars Technica said Tesla’s update described a first-generation Optimus line in Fremont designed for 1 million robots a year and a second-generation line in Texas aimed at 10 million over the long term. (tesla.com) (arstechnica.com) The core car business is still carrying most of the numbers. CNBC said automotive revenue rose 16% to $16.2 billion, and automotive gross margin excluding regulatory credits reached 19.2%, higher than any quarter last year. (cnbc.com) Tesla also said it plans “more affordable trims” of the Model 3 and Model Y, a signal that lower-priced versions of existing cars remain part of the sales strategy while the company funds newer bets. The update said demand improved in Asia-Pacific, South America, Europe, the Middle East and Africa, and North America during the quarter. (cnbc.com) (tesla.com) The next test is whether Tesla can keep producing cash while annual spending rises by at least $5 billion from its earlier plan. The quarter answered one question about profit and opened a larger one about how much investors will pay for the buildout Musk is promising. (bloomberg.com) (cnbc.com)