Tesla reported a healthy revenue increase in Q1, reaching $22.38 billion, up 16% year-over-year. The growth is attributed to higher automotive sales and active Full Self-Driving (FSD) subscriptions, which now number 1.28 million.

Despite the positive financials, Tesla’s deliveries fell short of expectations at 358,023 EVs for Q1. The company produced more vehicles than it delivered during this period, indicating a backlog or delayed shipments.

The jump in free cash flow to $1.44 billion was surprising and cheered investors. However, the company’s overall performance is mixed, with Q1 results showing some weakness compared to previous quarters due to lower EV sales.

Tesla’s future remains tied to its traditional business, but CEO Elon Musk continues to stress the importance of AI and robotics as strategic bets. The Optimus robot and robotaxi service are still in development, though preparations for a factory are set to begin soon.