Tesla's first-quarter profit climbed 17 per cent to $477mn, rebounding from a weak 2025 period when political backlash and factory shutdowns hurt sales. The electric-vehicle maker's recovery came as CEO Elon Musk shifts focus from traditional vehicles to AI-powered robotics and self-driving taxis, though the profit fell short of analyst expectations.

Revenue rose 16 per cent to $22.4bn, exceeding forecasts, while vehicle deliveries increased to 358,023 from 336,681 a year earlier. Adjusted profit surged 56 per cent to $1.5bn, beating estimates after stripping out cryptocurrency losses and rising stock-based compensation costs that jumped 87 per cent to $803mn.

Tesla produced 408,386 EVs in the quarter, leaving over 50,000 unsold units—almost double last year's inventory. The company invested heavily in AI infrastructure, with capital expenditure jumping 67 per cent to $2.5bn. Despite concerns about cash burn, Tesla reported $1.4bn in positive cash flow. Shares rose 4 per cent in after-hours trading, though the stock remains 15 per cent lower this year as investors weigh the company's ambitious pivot toward autonomous vehicles and robotics.