Tesla is reporting first-quarter earnings on Wednesday with its stock significantly underperforming the broader market, down 14% for the year while facing intense competition from Chinese EV makers and ongoing consumer concerns about CEO Elon Musk's political activities. Wall Street expects revenue of $22.64 billion, marking the company's strongest growth period since mid-2023, but investors are increasingly focused on whether Tesla can deliver on its long-promised self-driving technology and humanoid robots rather than traditional vehicle sales.

Tesla delivered 358,023 vehicles in the first quarter of 2026, up about 6% from a year earlier but lower than the previous quarter. The company's core automotive business has struggled as competitors like China's Xiaomi and BYD offer high-tech electric vehicles at lower price points, while Tesla's existing lineup has aged without major new models. Beyond market competition, the company has faced a consumer backlash tied to Musk's work with the Trump administration and his controversial political statements and endorsements.

Why Is Musk Dividing His Attention Between Tesla, SpaceX, and xAI?

During the first quarter, Musk's focus was significantly divided as he orchestrated a major corporate restructuring. He merged his aerospace and defense company SpaceX with his artificial intelligence venture xAI in a deal valued at $1.25 trillion, creating a combined entity that is now preparing for what is expected to be a record initial public offering. This move signals Musk's belief that artificial intelligence and space technology represent the company's highest-growth opportunities.

Tesla and SpaceX are now working on multiple joint projects that blend the two companies' capabilities. These collaborative efforts include building a Terafab chip manufacturing facility in Texas and integrating xAI's Grok AI models and chatbot technology into Tesla vehicles and robotics. In January, Tesla disclosed that it was investing approximately $2 billion in xAI, holdings that converted to SpaceX shares as part of the merger.

What Are Investors Asking About Tesla's Future?

Shareholders submitting questions ahead of Wednesday's earnings call are pressing Musk on several forward-looking initiatives that go well beyond traditional vehicle sales. The questions reveal investor skepticism about Tesla's ability to compete on cars alone and a hunger for concrete timelines and performance metrics on emerging technologies.

• Self-Driving Technology: Investors want hard numbers on Tesla's long-promised autonomous driving capabilities, including when the company will release a robotaxi-ready vehicle and expand its ride-hailing service beyond Texas.
• Humanoid Robots: Shareholders are asking when Tesla plans to reveal the newest version of its Optimus humanoid robots and what commercial applications the company envisions for the technology.
• Corporate Integration: Multiple investors have asked whether Tesla and SpaceX may eventually merge, and how the companies will continue collaborating on AI, manufacturing, and other joint ventures.

Currently, Tesla's Robotaxi service operates mostly with human drivers in California or with human safety supervisors in the vehicle. The company recently announced expansion to Dallas and Houston, but it still trails Alphabet's Waymo in the United States and Baidu's Apollo Go in China.

How to Understand Tesla's Shift From Cars to AI and Robotics

• Revenue Reality: Tesla still relies on electric vehicle sales for the bulk of its revenue and does not yet sell a robotaxi-ready vehicle, meaning the company must continue delivering cars while developing future technologies.
• Current Autonomous Offering: Tesla offers an FSD (Full Self-Driving) Supervised system for $99 per month, but it requires active human supervision and the driver must remain attentive and ready to steer or brake at any time.
• Regulatory Progress: The company recently gained permission to sell FSD Supervised in the Netherlands and is seeking broader approval across Europe, suggesting a gradual expansion of autonomous capabilities.
• Energy Storage Decline: Tesla deployed 8.8 gigawatt hours of battery energy storage systems in the first quarter, a significant drop from 14.2 gigawatt hours in the fourth quarter of 2025, disappointing Wall Street expectations.

The earnings report comes at a critical moment for Musk and Tesla. The company's stock underperformance relative to other megacap technology companies reflects investor concerns about whether Musk can balance his expanding empire of companies while delivering on Tesla's core business and its ambitious technology roadmap. Analysts expect earnings per share of 37 cents and revenue growth of approximately 17% from $19.3 billion a year earlier.

The broader context matters here: Tesla is no longer just an electric vehicle company in the eyes of many investors. The merger of SpaceX and xAI, combined with joint projects in chip manufacturing and AI integration, suggests Musk is positioning Tesla as part of a larger ecosystem where artificial intelligence, space technology, and autonomous systems converge. Whether Wall Street believes this vision can translate into sustained profitability and growth will likely shape Tesla's stock performance in the months ahead.