Tesla beat Wall Street profit expectations to start the year, with profits rising compared to this time last year. The automaker reported that demand for its electric vehicles is rebounding globally, following a sharp slump in 2025. This increase in car sales suggests a possible recovery for the company's long-struggling automotive business.
While car sales have trended upward, Tesla noted that battery sales and emissions credits are down.
Despite the growth in profit, the company warned investors to prepare for expensive investments in next-generation technology. Tesla is directing significant funding toward artificial intelligence, humanoid robots, and its own chip fab.
Tesla shares slipped after the company announced it expects to invest more than US$25 billion in 2026. This updated figure is US$5 billion higher than previous estimates.