New York — Tesla’s profits rose in the first quarter as its car sales rebound from a sharp decline in 2025.
The electric car maker run by billionaire Elon Musk said it made $477 million in profit this quarter, up 17% from a year ago. Earnings per share amounted to 13 cents. Adjusted for certain items, earnings per share were 41 cents, beating Wall Street estimates of 36 cents.
Revenues rose to $22.39 billion, driven by a 16% increase in vehicle revenues.
However, profits and revenues are well below their peak when its cars were grabbing market share. Now it’s the other way around, with European and Chinese competitors stealing its customers. Last year, the company lost its crown as the world’s largest electric car maker to the Chinese company BYD.
Musk repeatedly ignored his car’s problems, stressing that Tesla’s future does not lie in car sales as much as it lies in urging people to do so. Horse riding in them a Self-driving taxis. The company said that automated taxi miles doubled in the first quarter compared to the fourth quarter of last year. It currently operates in San Francisco and three Texas cities, including Austin where Tesla is headquartered.
Musk has also been highlighted in Tesla’s production Robots For Homes and Businesses On a conference call with investors on Wednesday, he talked about breaking ground on a new Texas robotics factory, called Optimus, with a potential capacity to produce 10 million a year.
“I think Optimus will be our biggest product,” Musk said, adding: “Not just Tesla’s biggest product ever, but probably the biggest product ever.”
The company indicated that it has begun manufacturing so-called Cybercabs without pedals or wheels. Musk added a teaser to the call, saying Tesla could debut a new manual-driven Roadster sports car within a month or so.
The company is spending heavily on the transformation, including $2.5 billion in capital expenditures last quarter, up 67% from the same period a year earlier.
Musk warned of a “very significant increase” in the future as well.
Shares fell 1% in after-hours trading.