Tesla Crushes Q1 Earnings with $0.41 EPS, 21.1% Margins; Shares Surge 2.5%

Tesla Inc beat Q1 expectations decisively, reporting adjusted EPS of $0.41 versus $0.34 estimated and gross margins of 21.1% against 17.7% forecasts, driving shares up 2.5% intraday. Coverage evolved from early previews highlighting robotaxi hype, Optimus updates, and AI investments amid delivery shortfalls (358,023 vs. 370k expected), inventory buildup (~50k units), and $20B+ 2026 capex worries. Despite negative free-cash-flow risks and softening EV demand, robust auto margins and $1.4B free cash flow reaffirmed profitability, overshadowing core challenges and fueling post-earnings momentum.