Tesla released its Q1 2026 earnings report on April 22, 2026, to a mixed response, with revenues rising to $22.4 billion and adjusted EPS exceeding the 30-cent estimate. However, Morgan Stanley warned that investors should not ignore the company's long-term story. The bank reiterated its equal-weight rating and $415 price target on Tesla, stating that with shares currently trading in the $375 to $380 range, this implies roughly 9% to 11% upside. The company's future businesses still look more like future businesses, with auto gross margins boosted by a $230 million release of the warranty reserve and energy margins receiving an even larger $250 million tariff rebate. However the bank highlighted that the company’s capex guidance for the future has surged to $25 billion, raising the cost of chasing that future. The firm's stock returned -3.24% over one week, compared with the S&P 500’�s 1.76% return.