Tesla reported a 16% rise in first-quarter revenue on Wednesday, driven by higher vehicle deliveries, improved margins and expanding global demand, as the electric vehicle maker continued to invest in artificial intelligence and next-generation products.
The company posted total revenue of $22.4 billion for the January–March period, while gross profit surged 50% year-on-year to $4.72 billion. Net income attributable to common shareholders rose 17% to $477 million, with diluted earnings per share increasing to $0.13 from $0.12 a year earlier.
Tesla said operating income more than doubled to $941 million, compared with $399 million in the same quarter last year, lifting its operating margin to 4.2% from 2.1%. The company also reported strong cash generation, with operating cash flow climbing 83% to $3.94 billion and free cash flow reaching $1.44 billion. Cash and short-term investments stood at $44.74 billion at the end of the quarter.
Vehicle production and deliveries also increased, with Tesla producing 408,386 vehicles and delivering 358,023 units globally, up 13% and 6% respectively. The bulk of output came from its Model 3 and Model Y lines, which accounted for more than 394,000 units produced and nearly 342,000 deliveries.
Tesla said demand remained robust across key regions, with notable growth in Asia-Pacific and South America, alongside a rebound in Europe, the Middle East and Africa, as well as steady performance in North America.
The company highlighted ongoing investments in artificial intelligence and infrastructure to support its Robotaxi and robotics ambitions. It said it had begun scaling additional AI computing capacity and advancing battery production, while preparing manufacturing lines for upcoming products including Megapack 3, Cybercab and the Tesla Semi.
Tesla also confirmed regulatory progress, noting approval for its Full Self-Driving (Supervised) system in the Netherlands and the launch of unsupervised Robotaxi services in Dallas and Houston earlier this month.