Tesla: cash surprise, big capex

Tesla reported positive free cash flow of about $1.4 billion in Q1 2026 even as management said capital expenditures for 2026 will exceed $25 billion. (tesla.com) (cnbc.com) The company posted revenue of $22.39 billion and adjusted earnings per share of $0.41 for the quarter ended March 31, 2026. (cnbc.com) Automotive revenue was about $16.2 billion in Q1, roughly 73% of Tesla’s total sales, according to company disclosures and analyst summaries. (cnbc.com) (fool.com) Tesla produced 408,386 vehicles and delivered 358,023 in Q1, creating an ~50,000‑unit build that pushed days of inventory to about 27 from 15 in the prior quarter. (ir.tesla.com) (qz.com) CFO Vaibhav Taneja told analysts the company now expects 2026 capex “over $25 billion” to fund factories, AI compute, an Austin chip fab and robotics programs, and CEO Elon Musk said the spending is “well justified.” (techcrunch.com) (money.usnews.com) Markets reacted unevenly: shares jumped roughly 4% in after‑hours trading on the results but pared gains and traded lower during the earnings call after management raised its capex target. (cnbc.com) (bloomberg.com) Services and other revenue climbed about 42% year‑over‑year to roughly $3.75 billion, driven by Full Self‑Driving (FSD) subscriptions and early Robotaxi rides in Dallas and Houston. (fool.com) (tesla.com) Analysts voiced split views: some bullish notes flagged Tesla’s AI and robotics roadmap as a re‑rating catalyst, while Morningstar and other sell‑side commentaries warned the jump to >$25 billion in 2026 capex will likely push free cash flow negative for the rest of the year. (seekingalpha.com) (morningstar.com) The next hard reset for investors will come as Tesla spends through its raised 2026 capex plan and reports Q2 results — the company reported Q1 on April 22, 2026 and market calendars currently list the next quarterly report in late July 2026 (earnings date shows July 29, 2026 on aggregator calendars). (techcrunch.com) (tipranks.com)