Tesla’s revenues are rising again as it prepares for more artificial intelligence and robotics

Tesla said it generated net income of $477 million on revenue of $22.4 billion in the quarter ending in April 2026. This represents a 16 percent increase in revenue and a 17 percent increase in profits during the first quarter of 2025, when the company generated net income of $409 million on revenue of $19.3 billion. Tesla missed revenue forecasts from Wall Street, which assumed revenue of about $22.64 billion.

As part of a set of earnings updates, Tesla said preparations for the first “large-scale” factory to build its Optimus robots will begin in the second quarter. “The first-generation line, designed for 1 million robots per year, will replace the Model S and Model X lines in Fremont,” Tesla said. Gigafactory Texas will host the second generation line, “designed for a long-term annual production capacity of 10 million robots.” After Musk announced in January that Tesla was “Resume work” On its Dojo 3 supercomputer – which Musk noted At that time it will be “space-based AI computation” — with the earnings update group stating that Tesla is “continuing” its work on the project.

The first quarter of the year seems to offer a glimmer of hope Tesla mentioned A modest 6 percent increase in sales year over year. But it’s a misleading comparison considering that sales in the first quarter of 2025 were artificially low thanks to the assembly line shutting down for the Model Y “Juniper” refresh. The first quarter of 2025 also coincided with Musk’s leadership of DOGE, his Nazi salute at President Trump’s inauguration, and the first Tesla Takedown protests.

The past three months have been a series of ups and downs for Tesla. The company launched a robotaxi service in Dallas and Houston, but the service Seems to be unavailable for the most part Due to the lack of vehicles. The Netherlands officially agreed Tesla’s Full Self-Driving (FSD) has been supervised, making it the first European country to allow the company’s Level 2 advanced driving assistance system to be used on its roads. It seems that Tesla has found a solution to the problem Cybertruck sales collapse: Selling the polarizing electric truck to Elon Musk’s private companies.

Of course, Tesla is less interested in selling vehicles than in developing artificial intelligence and humanoid robots. Company It parked its Model S and Model To make room in its factory to produce the Optimus robot. And Cybercab, the company’s two-seat self-driving vehicle, He was spotted On the road – even with the steering wheel.

This has led many Tesla watchers to assume so Musk has lost interest in selling carsAlthough a huge amount of his company’s revenue still comes from car sales. It is worth noting that a recent Reuters report states that Tesla is working on developing a new, affordable electric SUV, after canceling a similar plan two years ago.