Tesla, the leader in the U.S. electric vehicle (EV) market, reported Q1 sales of $22.38 billion, a 16% increase year over year, surpassing estimates of $21.92 billion. The company reported a net earnings per share (EPS) of $0.41, exceeding expectations of $0.36, but its stock dipped by 3% on Thursday following the announcement of a $5 billion increase in capital expenditures for the year. Notably, Tesla also recorded 1.28 million active full self-driving users, up 51% year over year, contributing to an increase in services revenue and generating $1 billion in free cash flow during the quarter.
General Motors (GM), which holds the second position in the U.S. EV market, is set to report Q1 results on April 28, with analysts expecting a slight revenue decrease to approximately $43.67 billion and a quarterly EPS of $2.59, down 7% year on year. The anticipated drop reflects ongoing global auto demand challenges, with GM estimating a $1 billion tax impact due to reliance on imported components facing new tariffs.
Despite recent stock declines, both companies have seen substantial gains in the last three years, each over 120%. Tesla shares are down 17% year to date, while GM is down by 3%. As GM’s software and service offerings like OnStar and Super Cruise expand, investors are weighing the growth potential against Tesla’s broader market reach in energy and AI.
