Key TakeawaysTesla’s first-quarter revenue reached $22.4 billion, falling short of analyst projections, though profit figures exceeded expectationsPer-vehicle gross profit climbed to $9,558, marking an increase from the previous quarter’s $8,000The company shipped 358,203 vehicles while producing 408,386 — creating the largest production-delivery mismatch in over five yearsManagement increased 2026 capital spending projections to $25 billion from $20 billion, forecasting negative free cash flow through year-endMultiple Wall Street firms including Cantor Fitzgerald, Roth/MKM, and Piper Sandler reaffirmed positive outlooks after the releaseTesla’s first-quarter financial results showed earnings surpassing expectations while revenue fell slightly short, but investor attention has zeroed in on a single figure that’s driving concern: $25 billion.Tesla, Inc., TSLAThis represents the company’s revised capital investment projection for 2026, elevated from the previously announced $20 billion target. Executives indicated that free cash flow will remain in negative territory for the remainder of the year due to this aggressive spending plan. Market participants responded unfavorably to the announcement.First-quarter revenue totaled $22.4 billion, marginally under Wall Street consensus. Profit performance, conversely, surpassed forecasts. Free cash flow of $1.44 billion significantly outperformed analyst estimates, which had predicted a negative $1.78 billion.Unit Economics Show Positive MomentumThe more promising narrative emerges from the electric vehicle segment’s underlying economics. Gross profit generated per vehicle delivered reached $9,558 during the quarter, representing a substantial improvement from the prior quarter’s $8,000 figure. EBITDA per delivery similarly advanced for the second straight quarter, hitting $10,245.These metrics remain below peak levels achieved prior to 2023, when competitive pressures were minimal and consumer demand for electric vehicles was robust. However, the trajectory has turned positive following two years of margin compression driven by aggressive pricing strategies and intensifying competition.Tesla manufactured 408,386 vehicles during the first quarter while delivering only 358,203 units. This represents the widest discrepancy between production and deliveries observed since at least 2019. Company officials attributed part of the gap to logistical challenges, though the explanation doesn’t fully account for the magnitude of the difference.Product Development Continues as ScheduledRegarding product initiatives, Tesla confirmed that the Cybercab, Tesla Semi, and Megapack 3 remain on schedule for volume manufacturing this year. The Cybercab has officially commenced production — representing a purpose-built robotaxi without traditional steering controls, engineered specifically for autonomous transportation services.Cantor Fitzgerald maintained its Overweight rating alongside a $510 price target following the quarterly report. The investment firm characterized the results as robust. Roth/MKM similarly preserved its Buy recommendation, highlighting positive demand dynamics and effective average selling price management. Piper Sandler retained its Overweight stance while acknowledging the elevated capital expenditure outlook. Morgan Stanley maintained its Equalweight rating, observing that Tesla has entered a period of substantial capital deployment.TSLA has declined approximately 16% year-to-date, despite posting a 32% advance over the trailing twelve months. Shares currently trade near $376, considerably below Cantor Fitzgerald’s $510 valuation target.The updated capital spending blueprint encompasses robotaxi development, the Optimus humanoid robot project, and various artificial intelligence infrastructure investments. Tesla’s market capitalization currently stands at roughly $1.4 trillion.The post Tesla (TSLA) Stock Drops as $25B Spending Plan Alarms Investors Despite Q1 Earnings Beat appeared first on Blockonomi.