Tesla’s first-quarter free cash flow is unexpectedly positive

Tesla reported unexpected positive free cash flow in the first quarter, defying expectations of cash burn. As the electric vehicle manufacturer has not yet ramped up investment in artificial intelligence and production capacity.

Shares of the automaker rose 3.4% in after-hours trading.

The company reported positive free cash flow of $1.44 billion in the first quarter, compared to estimates of a cash burn of $1.43 billion, according to data compiled by LSEG.

The Austin, Texas-based automaker reported revenue of $22.39 billion for the quarter ended March 31. Compared to the average analyst estimate of $22.6 billion, according to data compiled by LSEG.

Although Tesla delivered fewer cars than Wall Street anticipated in the first quarter, deliveries increased 6.3% year over year during a time when demand had been impacted by demonstrations against Musk’s far-right ideas.

As rivals release newer models, frequently at lower price points, Tesla’s primary automotive industry has been under pressure.

The problem has been made worse by the expiration of a tax incentive for electric vehicles in the United States.

Based on data from Visible Alpha, Wall Street predicts that the company will supply 1.67 million units in 2026, a 2.4% rise.

Investors are paying more attention to Musk’s efforts to advance robotics and autonomous driving technologies. In an effort to find more proof that the autonomy story is becoming a reality rather than just a promise.

Earlier this year, Musk announced that Tesla would start manufacturing the Cybercab, a car made especially for this use, in April. He described it as a completely automated car without a steering wheel or pedals.

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