Tesla profits rose in the first quarter as Musk teases debut of new Roadster
AP News • • business
Key Points:
- Tesla reported a 17% rise in first-quarter profit to $477 million, with adjusted earnings per share of 41 cents, surpassing Wall Street estimates of 36 cents, driven by a 16% increase in automotive revenues.
- Despite the profit growth, Tesla's revenue and profits remain below peak levels as competition from European and Chinese EV makers, notably BYD, has eroded its market share.
- CEO Elon Musk emphasized Tesla's strategic shift from car sales to autonomous ride services, noting that robotaxi miles doubled in the first quarter and are operating in several U.S. cities.
- Musk highlighted Tesla's development of Optimus robots, projecting them as potentially the company's biggest product, with plans for a new Texas factory capable of producing up to 10 million units annually.
- The company is investing heavily in this transition, with capital expenditures rising 67% year-over-year to $2.5 billion, and Musk warned of significant future spending increases; Tesla shares fell 1% in after-hours trading.
