Tesla said it earned $477 million in net income on $22.4 billion in revenue in the quarter that ended in April 2026. That\u2019s a 16 percent increase in revenue and a 17 percent increase in profits over the first quarter of 2025, when the company earned $409 million in net income on $19.3 billion in revenue. Tesla missed revenue expectations from Wall Street, which assumed approximately $22.64 billion in revenue.<\/p>\n
As part of the earnings update deck, Tesla said that preparations for its first \u201clarge-scale\u201d factory to build its Optimus robots will begin in Q2. \u201cThe first-generation line, designed for 1 million robots a year, will replace the Model S and Model X lines in Fremont,\u201d Tesla said. Gigafactory Texas will host the second-generation line, \u201cwhich is being designed for long-term annual production capacity of 10 million robots.\u201d Following Musk\u2019s announcement in January that Tesla was \u201crestarting work\u201d<\/a> on its Dojo 3 supercomputer \u2014 which Musk noted<\/a> at the time will be \u201cspace-based AI compute\u201d \u2014 the earnings update deck said that Tesla is \u201ccontinuing\u201d its work on the project.<\/p>\n The first quarter of the year seemed to offer a glimmer of hope when Tesla reported<\/a> a modest 6 percent increase in sales year over year. But it\u2019s a misleading comparison considering sales in Q1 2025 were artificially depressed thanks to assembly line shutdowns for the Model Y \u201cJuniper\u201d refresh. The first quarter of 2025 also coincided with Musk\u2019s leadership of DOGE, his Nazi salute at President Trump\u2019s inauguration, and the first Tesla Takedown protests.<\/p>\n The past three months have been a series of ups and downs for Tesla. The company launched a robotaxi service in Dallas and Houston, but the service appeared to be mostly unavailable<\/a> due to the lack of vehicles. The Netherlands officially approved<\/a> Tesla\u2019s Full Self-Driving (FSD) Supervised, making it the first European country to authorize the use of the company\u2019s Level 2 advanced driving assistance system on its roads. And Tesla seemed to come up with a solution for cratering Cybertruck sales<\/a>: sell the polarizing electric truck to Elon Musk\u2019s own companies.<\/p>\n Of course, Tesla isn\u2019t as into selling vehicles as it is developing AI and humanoid robots. The company discontinued its Model S and Model X vehicles<\/a> to make room at its factory for production of its Optimus robot. And the Cybercab, the company\u2019s two-seater autonomous vehicle, has been spotted<\/a> out on the road \u2014 albeit with a steering wheel.<\/p>\n