Tesla Q1 Beats Estimates, Raises Capex to $25 Billion

Tesla beat Wall Street expectations in the first quarter of 2026, reporting stronger revenue, a sharply higher gross margin and a modest earnings-per-share surprise, while raising its full-year capital expenditure guidance by $5 billion. The mixed reaction in after-hours trading reflected enthusiasm about margins and caution about the spending outlook.

Revenue and Margins Rebound

Revenue came in at $22.38 billion, marginally above the $22.3 billion consensus and up 16 percent year over year from $19.3 billion. Non-GAAP earnings per share reached $0.41, ahead of the $0.37 consensus. Gross margin rose to 21.1 percent, up 478 basis points from 16.3 percent in the first quarter of 2025 and up from 20.1 percent in the fourth quarter of 2025, according to Electrek, CNBC and Drive Tesla Canada.

Automotive revenue rose 16 percent year over year to $16.2 billion, while energy revenue fell 12 percent to $2.41 billion from $2.73 billion. Deliveries totaled 358,023 vehicles, missing consensus by roughly 7,600.

Capex Guidance Jumps

Chief Financial Officer Vaibhav Taneja told investors that 2026 capital expenditure will top $25 billion, up from the prior $20 billion guidance. The $5 billion increase is widely read as a signal of accelerated spending on artificial intelligence infrastructure, Optimus humanoid robotics and full self-driving development.

Market Reaction

Tesla shares initially climbed about four percent in after-hours trading on the earnings beat before giving back gains as investors digested the higher capex outlook. The print reinforced a broader theme across Wednesday's earnings: strong current-quarter operating performance paired with rising long-term investment bills as megacap technology companies race to build AI capacity.