Tesla reported Q1 adjusted earnings of $0.41 per share, beating the $0.35 analyst forecast. Gross margin reached 21.7%, significantly higher than the expected 17.7%. Revenue totaled $22.39 billion, matching market estimates.
The company projected capital expenditures to exceed $25 billion in 2026. Management is accelerating investments in AI, robotics, and new manufacturing facilities to drive growth. Tesla warned that this increased spending could turn free cash flow negative later this year. Shares fell in pre-market trading following the announcement.
A separate 10-Q filing revealed Tesla entered an agreement to acquire an unnamed AI hardware company. The acquisition is valued at up to $2.0 billion. Tesla did not disclose the deal during its quarterly earnings call.