NEW YORK (AP) — Tesla's profit rose in the first quarter as its car sales rebounded from a sharp slump in 2025.
The electric vehicle maker run by billionaire Elon Musk said it earned $477 million in the quarter, up 17% from a year ago. Earnings per share totaled 13 cents. Adjusted for certain items, per share earnings were 41 cents, topping Wall Street estimates of 36 cents.
Revenue rose to $22.39 billion, led by a 16% increase in automotive revenues.
Still, profits and revenue are far below their peak when its cars were grabbing market share. Now that is in reverse as European and Chinese rivals steal its customers. The company last year lost its crown as the world's largest EV maker to China's BYD.
Musk has repeatedly shrugged off its car troubles, emphasizing that Tesla’s future lies less in car sales than getting people to t ake rides in them a s self-driving taxis. The company said robotaxi miles doubled in the first quarter compared to the fourth quarter of last year. They are currently running in San Francisco and three Texas cities, including Austin where Tesla is headquartered.
Musk has also been highlighted Tesla's production of robots for homes and businesses In a conference call with investors Wednesday, he talked about breaking ground for a new factory in Texas for the robots, called Optimus, with a potential capacity of making 10 million a year.
“I think Optimus will be our biggest product," said Musk, adding, “not just Tesla’s biggest product ever, but probably the biggest product ever.”
The company noted that it has begun making its so-called Cybercabs without pedals or wheels. And Musk added a teaser in the call, saying that Tesla could debut a new manually driven Roadster sports car in a month or so.
The company is spending big on its transition, including $2.5 billion last quarter in capital expenditures, up 67% from the year earlier period.
Musk warned of “a very significant increase” in the future, too.
Shares fell 1% in after-hours trading.
A Tesla electric vehicle charger is seen at a charging station on Wednesday, April 15, 2026, in Portland, Ore. (AP Photo/Jenny Kane)
The Trump administration took the unusual step this week of sending a government plane to Cuba to return a 10-year-old from Utah who is at the center of a complicated and contentious custody fight involving the child’s gender identity.
The child's parent, Rose Inessa-Ethington, a transgender woman, is accused of taking the child to Cuba without the permission of the biological mother. Federal and state authorities sought the return of the child after a family member expressed concern that Inessa-Ethington went to Havana to get the child gender transition surgery.
Inessa-Ethington was arrested along with her partner, Blue Inessa-Ethington, and charged in the U.S. with international parental kidnapping.
The couple traveled with the child to Canada ostensibly for a camping trip in late March with Blue’s 3-year-old child. However, the two adults turned off their phones after telling the older child’s mother they had arrived in Canada. They flew from Vancouver to Mexico and then to Cuba on April 1, according to a criminal complaint filed Monday in federal court in Utah.
The charges don't say if the couple actually planned on getting the child gender-affirming surgery in Cuba or how they would get it because that surgery isn't legal for children in Cuba.
The FBI said that Blue Inessa-Ethington withdrew $10,000 from her checking account before leaving. Agents also found at their home a note with instructions from a mental health therapist in Washington, D.C., “to send the therapist the $10,000.00 and instructions on gender affirming medical care for children.” That note didn't mention Cuba.
The use of the Department of Justice plane in a parental kidnapping investigation comes after President Donald Trump’s administration has sought to block access to gender-affirming care for minors and pressured health care providers over the issue.
The Associated Press left telephone and email messages with the court-appointed attorneys who represented Blue and Rose Inessa-Ethington in Virginia. The defendants will be returned to Utah to face one count each of international parental kidnapping, according to court filings.
The search for the child began on April 3 when they were not returned to the mother in Utah as scheduled, court documents show. The 10-year-old’s mother, who was divorced from Rose Inessa-Ethington and had shared custody of the child, filed a missing-person report with police in Logan City, Utah, about 70 miles (115 kilometers) north of Salt Lake City.
Logan City Police Chief Jeff Simmons said his department’s initial focus was on the custodial interference allegations in the case, and he said investigators did not learn until later about the concerns over gender-affirming surgery.
Logan police spokesperson Sgt. Brandon Bevan said those concerns were raised by one family member. He declined to say who.
“They just had the concern about it, no actual physical evidence” Bevan said.
A Utah state judge ordered the return of the 10-year-old to the child’s mother on April 13. Three days later, a federal magistrate judge issued an arrest warrant for the Inessa-Ethingtons. On the same day, Cuban law enforcement located the group. They were deported to the U.S. aboard the government plane Monday and arraigned in federal court in Richmond, Virginia.
The 10-year-old was returned to the child’s biological mother, First Assistant U.S. Attorney Melissa Holyoak in Utah indicated in a statement. Representatives of the FBI and U.S. attorneys office in Utah declined to say what happened to the 3-year-old child who had been with the group.
The custody dispute between the parents does not appear to be a new development. An online fundraiser created five years go by Blue Inessa-Ethington titled “Help a Trans Mother Keep Custody of Her Child” raised $9,766.
“Last week, Rose’s ex relocated several counties away, negatively impacting Rose’s parent-time with the child,” she wrote in the fundraiser. She said the money would be used to seek a court order that would keep the child “safe and stable throughout this process.”
Anyone who has spent time with Rose knows “how much care and thought she puts into parenting her gender open child,” she wrote.
She later continued, “While her ex is not making an issue of Rose’s gender, as a trans woman, Rose is at a disadvantage against her cishet ex-wife. Rose also lacks the family resources and connections to face this litigation on her own.”
Family members said the child was assigned male at birth but identifies as a girl because of what they believed to be “manipulation” by Rose Inessa-Ethington, according to an April 16 affidavit from FBI Special Agent Jennifer Waterfield.
The Trump administration moved in December to cut off gender-affirming care for minors, prompting a third of states to sue.
It was the latest in a series of clashes between an administration that says transgender health care can be harmful to children and advocates who say it’s medically necessary.
Gender-affirming surgery is rare among U.S. children, research shows. And fewer than 1 in 1,000 U.S. adolescents receive gender-affirming medications.
In February, the nation’s largest professional organization for plastic surgeons recommended gender-affirming surgeries be delayed until patients turn 19, diverging from several other major medical organizations’ guidance.
In Cuba, gender-affirming surgeries are banned for minors and only performed for adults through the public health system under strict supervision in designated public hospitals for Cuban citizens. They must be authorized by a medical commission after a comprehensive review of the patient’s file. That process often takes years because it requires a wide range of medical and psychological evaluations.
Associated Press journalists Eric Tucker in Washington, Cristiana Mesquita in Havana and Devi Shastri in Milwaukee contributed to this report.
FILE - The U.S. Department of Justice logo is seen on a podium before a news conference at the Justice Department in Washington, on May 6, 2025. (AP Photo/Julia Demaree Nikhinson, File)
