Tesla revenue misses estimates as demand weakens

Tesla reported surprising positive free cash flow of $1.44 billion in Q1, beating expectations for a $1.43 billion cash burn, sending shares up about 3.4% in extended trading. Revenue for the quarter came in at $22.39 billion, slightly below the $22.6 billion consensus, while vehicle deliveries missed Street estimates though rose 6.3% year-over-year. The report highlights mixed fundamentals: cash generation and a growing energy storage business provide upside, but core automotive margins and demand face pressure from competitor models and the expiry of a U.S. EV tax incentive. Investors remain focused on CEO Elon Musk’s push into autonomous driving and robotaxis (recent rollouts in Dallas and Houston) and regulatory moves toward EU approval for Full Self-Driving. Overall market reaction was modestly positive but tempered by weaker auto metrics and uncertainty around scaling AI and manufacturing investments.