Tesla Q1 Revenue Reaches $22.4B, Beats EPS Estimates Despite Missing Top-Line Guidance

Gate News message, April 22 — Tesla reported first-quarter 2026 revenue of $22.39 billion, representing 16% year-over-year growth but falling slightly short of Wall Street's $22.64 billion consensus estimate. However, the company exceeded earnings expectations, posting adjusted earnings per share of 41 cents versus the 37 cents analysts anticipated. TSLA stock surged more than 4% in extended trading following the earnings announcement.

Tesla's digital assets carrying value declined significantly from approximately $1.008 billion at the end of Q4 2025 to $786 million in Q1, driven by fair value adjustments reflecting Bitcoin's price decline. The company did not disclose any Bitcoin purchases or sales during the quarter. Net income increased to $477 million from $409 million year-over-year, while automotive revenue rose 16% to $16.2 billion from $14 billion.

The company announced plans to introduce more affordable Model Y and Model 3 variants as competition intensifies from rivals including BYD and Xiaomi. Automotive gross margin, excluding environmental regulatory credits, reached 19.2%, the highest in any quarter last year, supported by higher average selling prices and lower material costs. Capital expenditures jumped 67% to $2.49 billion, reflecting increased spending on self-driving technology and Optimus humanoid robot development. Energy segment revenue fell 12% to $2.41 billion.

Tesla said preparations for its first large-scale Optimus factory will begin in Q2, with the first-generation production line targeting annual output of 1 million robots. Meanwhile, TSLA has declined 14% year-to-date through Wednesday's close, underperforming the S&P 500's 4% gain and trailing Amazon (up 11%), Alphabet (up 8%), and Nvidia (up 9%).