Tesla posts 16% revenue growth to $22.4 billion, misses Wall Street estimates

Tesla reported $22.39 billion in revenue for the first quarter of 2026, a 16% increase from a year earlier, but slightly below Wall Street expectations of $22.64 billion.

Adjusted earnings per share came in at 41 cents, beating the 37 cents analysts were expecting. Shares moved higher after the report, rising more than 3% in after-hours trading.

The company’s main strength continues to be its automotive business. Revenue from vehicle sales reached $16.2 billion, up from $14 billion a year ago. On the other hand, its energy segment declined, with revenue falling 12% to $2.41 billion.

Tesla did not report any new Bitcoin transactions this quarter. However, the value of its digital assets dropped from about $1 billion at the end of 2025 to $786 million, mainly due to the decline in Bitcoin prices.

Net income rose to $477 million, or 13 cents per share, compared to $409 million, or 12 cents per share, in the same period last year. Total revenue a year ago stood at $19.3 billion.

Even with the growth, Tesla’s stock is down about 14% so far in 2026, making it one of the weaker performers among major tech companies. Over the same period, Amazon has gained around 11%, Alphabet about 8%, Nvidia roughly 9%, and the S&P 500 about 4%.

The company is leaning heavily on its core EV business while facing stronger competition. Tesla said it plans to introduce more affordable versions of the Model Y and Model 3, as rivals continue to release newer and cheaper electric vehicles. Chinese automakers like BYD and Xiaomi are adding pressure with competitive pricing and newer designs.

Earlier this month, Tesla reported 358,023 vehicle deliveries for the quarter. That figure was lower than the previous quarter but about 6% higher than a year ago. Past results were also affected by temporary production slowdowns tied to factory upgrades.

Tesla is also dealing with some consumer backlash related to Elon Musk’s political involvement and public statements, which could be weighing on demand.

On margins, the company reported an automotive gross margin of 19.2%, excluding regulatory credits, an improvement compared to last year. Tesla said this was driven by higher average selling prices and lower production costs, especially from cheaper materials.

Outside of cars, the energy business brought in $2.41 billion, down from $2.73 billion a year earlier. At the same time, Tesla significantly increased spending, with capital expenditures rising 67% to $2.49 billion.

Elon Musk has been shifting focus toward self-driving technology and humanoid robots. Tesla is currently testing a small number of autonomous vehicles in a ride-hailing service in Texas, though most of its revenue still comes from EV sales.

The company also said earlier this year it plans to end production of the Model S and Model X, using its Fremont factory to focus on building its Optimus humanoid robot.

In the latest report, Tesla said preparations for a large-scale Optimus factory will begin in the second quarter, with a first-generation production line targeting up to one million units per year.

Analyst Thomas Monteiro said the real focus should be on Tesla’s cash flow, especially as the company deals with broader economic pressures and challenges in its core business.

He added that moving toward services, including subscriptions for Full Self-Driving, could help support margins over time, especially if regulatory conditions improve.