Tesla (TSLA) shares bounced over 3% initially afterhours on Wednesday as the electric vehicle (EV) and battery concern run by CEO Elon Musk reported adjusted earnings and revenue that beat Wall Street estimates.
Tesla reported adjusted earnings per share (EPS) of $0.41 on revenue of $22.39 billion. Wall Street analysts had predicted $0.35 in adjusted EPS on $22.2 billion in revenue for the quarter.
Gross margin rose to 21.1%, beating the prior quarter’s 20.1% ratio. Additionally, free cash flow arrived at $1.44 billion compared to $1.42 billion in the fourth quarter of 2025.
