Tesla’s robotaxi roll-out and AI roadmap to steal the show as first-quarter results loom Proactive uses images sourced from Shutterstock
AI progress and autonomous vehicle expansion set to dominate Wednesday’s earnings call, says the bank.
Tesla Inc’s (NASDAQ:TSLA)Â artificial intelligence ambitions and the early-stage rollout of its robotaxi service will be the central focus when the electric vehicle maker reports its first-quarter 2026 results on Wednesday, according to Wedbush Securities, which maintains an ‘outperform’ rating and a $600 price target on the stock.
Wedbush analyst Dan Ives said the call is expected to provide greater clarity on Tesla’s plan to spend approximately $20 billion on AI capital expenditure this year across its Cybercab autonomous vehicle, semi-truck production, and a new mega factory.
The robotaxi programme, which has launched in Dallas and Houston as part of a seven-city US rollout, alongside the debut of the Cybercab, is expected to attract the most attention from investors, with bulls and bears divided on how quickly Tesla’s AI-driven business model will take shape.
Ives also flagged Tesla’s $2 billion investment in xAI, the artificial intelligence company founded by Elon Musk, and SpaceX’s subsequent acquisition of xAI in February as areas where investors will seek more detail, particularly around how the investment translates into Tesla holding SpaceX shares.
Further questions are expected around the Terafab facility buildout and which entity will bear the capital burden, alongside an update on the conversion of Tesla’s Model S/X factory into a production hub for its Optimus humanoid robot, which the company expects to scale to 1 million units over the coming years.
On the financial results themselves, Wedbush said consensus expectations of around $22.4 billion in revenue and $0.37 in earnings per share reflect the difficult demand environment in Europe and the United States during the quarter, with tariff costs in the final quarter of 2025 exceeding $500 million.
A regulatory milestone during the week provided an incremental positive, with Dutch authorities approving Tesla’s Full Self-Driving (FSD) supervised system, marking the company’s first autonomous technology approval in Europe.
Ives noted that Germany, France, and Italy are expected to follow with approvals over the coming months, and said Europe represents a significant growth opportunity for Tesla once FSD clears regulatory hurdles across the region.
Wedbush’s $600 price target against a current share price of $394.79 implies upside of around 53%.