Tesla exceeded Wall Street expectations with first-quarter results showing $22.4 billion in revenue, a 16% increase from the same period last year. The electric-vehicle maker also reported net income growth of 17%, demonstrating resilience despite ongoing competitive pressures in the automotive market.

The biggest surprise came from Tesla's cash generation. Analysts had predicted the company would post negative free cash flow for the first time in two years. Instead, Tesla delivered $1.4 billion in positive free cash flow, easing concerns about the company's financial trajectory amid slowing EV demand.

Energy storage revenue, previously a bright spot, fell 12% in the quarter. While the automotive segment climbed 16% year-over-year, the results still mark a steady decline since last year's third-quarter peak when sales were spurred by an expiring $7,500 federal tax credit. Tesla has recently expanded its robotaxi service in Dallas and Houston.