Tesla has reported an increase in Q1 revenue and profit, but the costs of pivoting towards an AI future are increasing. The company is investing heavily in the development and production of humanoid robots, self-driving cars, and AI chips. However, its operating margin fell to 4.2%, declining for the second consecutive quarter. Net income was $477 million, up 17%, and operating expenses increased 37%, to $3.78 billion. The firm expects volume production of the Cybercab and electric Semi in 2026.