first-quarter earnings report<\/a>, driven largely by a jump in its free cash flow, as well as increases in revenue and profit on a year-over-year basis. That share price bump was brief and ended up heading into negative territory during the company’s earnings call. <\/p>\n\nThe company reported Wednesday revenue of $22.38 billion, a 16% increase from the $19.3 billion it generated in the first quarter of 2025. Its automotive revenue also rose to $16.2 billion, compared to $13.96 billion in the same year-ago period. Notably, the company reported positive free cash flow \u200cof $1.44 billion, more than double what it held in the first quarter of 2025. The figure surprised analysts who had expected the company to burn through more cash in the first quarter.<\/p>\n\n
That pop in revenue, which met expectations of analysts\u2019 surveyed by Yahoo Finance, provided a bit of good news for the company, which has grappled with lagging EV sales. Tesla delivered 358,023 EVs globally in the first three months of the year, below analysts’ expectations of around 368,000. The company also produced 408,386 vehicles during that same period, far more than it delivered.<\/p>\n\n
The company’s first-quarter revenue got a bump from higher average vehicle prices, services, and active FSD subscriptions, which grew 51% year-over-year to 1.28 million.<\/p>\n\n
Tesla\u2019s business hit considerable headwinds in 2025 causing profits to fall<\/a> 46% year-over-year to $3.8 billion. The dip was primarily due to lower EV sales \u2014 a problem other automakers also faced after the Trump administration ended the $7,500 federal tax credit for electric vehicles. <\/p>\n\nTesla\u2019s first-quarter results, while positive in year-over-year terms, still shows some weakness when the previous three quarters are taken into account. The company’s fourth-quarter revenue was $24.9 billion and its third-quarter revenue was $28 billion, a figure propped up by consumers who bought an EV before the tax credit expired.<\/p>\n
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