Tesla: profit beat, bigger bets

Tesla beat profit estimates in Q1 2026 — adjusted EPS was $0.41 — but revenue came in at $22.39 billion, below some forecasts as auto margins rose. ( cnbc.com ) The company reported adjusted earnings per share of $0.41 versus $0.37 expected and net income of $477 million for the quarter. ( cnbc.com ) Tesla said Q1 vehicle deliveries were 358,023 and production was 408,386, while automotive gross margin excluding regulatory credits improved to about 19.2%. ( teslarati.com ) CEO Elon Musk told investors Tesla will “substantially” increase capital spending, laying out a 2026 capex plan he described as $25 billion or more to push AI, Full Self‑Driving, robotaxis and chip efforts. ( finance.yahoo.com ) Management warned near‑term free cash flow may turn negative as spending rises, and the stock jumped about 4% in extended trading before trimming gains after Tesla said 2026 spending would be roughly $5 billion above prior guidance. ( finance.yahoo.com cnbc.com ) Some critics and reporters flagged that the quarter’s profit beat leaned on one‑time benefits such as warranty and tariff refunds and changes to supplier payment timing. ( electrek.co ) Analysts are split: Morgan Stanley and others say FSD progress and robotaxi rollouts need clearer, tangible milestones to justify the bigger capex cycle, even as some investors remain bullish on long‑term upside. ( forbes.com ) Tesla’s larger chip and AI ambitions — including Musk’s Terafab chip initiative discussed publicly this year — add scale to the spending plan and complicate forecasts for returns and timing. ( thestreet.com ) “I think it’s going to pay off in a very big way,” Musk said on the call about the increased investments, and Tesla will report back on execution and cash flow as the capex cycle plays out. ( finance.yahoo.com )