Tesla Q1 Revenue Beats Estimates, Plans Higher Capex
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- Tesla reported Q1 revenue of $22.38 billion, up 16 % YoY and beating analyst expectations.
- Tesla posted adjusted earnings per share of 41 cents, a 51 % YoY increase and above forecasts.
- Tesla announced a significant increase in capital‑expenditure spending to fund robotaxi rollout, Optimus production, and the Terafab chip fab with SpaceX.
- CFO Vaibhav Taneja warned that robotaxi scaling issues such as getting stuck at intersections could affect service reliability.
- Elon Musk said robotaxi vehicles sometimes become “paranoid” and stop for safety reasons, not convenience.
- Tesla noted a “correction” in the U.S. residential solar market after the 2025 tax‑credit loss, but expects strong demand in the second half of the year.
- Tesla will use Intel’s 14A chip process for its next‑generation AI hardware.
Why it matters: Investors see a short‑term boost from the earnings beat, but the announced capex surge and robotaxi scaling problems signal higher costs and slower rollout, potentially denting Tesla’s margin growth and delaying new revenue streams from autonomous rides and solar sales.
