Tesla profits rose in the first quarter as car sales rebound

NEW YORK

Tesla's profit rose in the first quarter as its car sales rebounded from a sharp slump in 2025.

The electric vehicle maker run by Elon Musk said it earned $477 million in the quarter, up 17 percent from a year ago.

Revenue rose to $22.39 billion, led by a 16 percent increase in automotive revenues.

Still, profits and revenue are far below their peak when its cars were grabbing market share. Now that is in reverse as European and Chinese rivals steal its customers. The company last year lost its crown as the world's largest EV maker to China's BYD.

Musk has repeatedly shrugged off its car troubles, emphasizing that Tesla’s future lies less in car sales than getting people to take rides in them a s self-driving taxis.

The company said robotaxi miles doubled in the first quarter compared to the fourth quarter of last year. They are currently running in San Francisco and three Texas cities.

Musk has also been highlighted Tesla's production of robots for homes and businesses. In a conference call with investors, he talked about breaking ground for a new factory in Texas for the robots, called Optimus, with a potential capacity of making 10 million a year.

The company noted that it has begun making its so-called Cybercabs without pedals or wheels. And Musk added a teaser in the call, saying that Tesla could debut a new manually driven Roadster sports car in a month or so.

The company is spending big on its transition, including $2.5 billion last quarter in capital expenditures, up 67 percent from the year earlier period.

Musk warned of “a very significant increase” in the future, too.