Tesla reported first-quarter earnings on Wednesday that beat analysts’ estimates even as revenue came in weaker than expected. The shares rose more than 3% in extended trading.

Here’s how the company did, compared with estimates from analysts polled by LSEG:

• Earnings per share: 41 cents adjusted vs. 37 cents expected
• Revenue: $22.39 billion vs. $22.64 billion expected

Tesla’s stock has underperformed all of its megacap peers so far this year, dropping 14% as of Wednesday’s close. The company’s core automotive business continues to struggle against competition from competitors across the globe like China’s BYD and Xiaomi.

Revenue increased 16% in the quarter from $19.3 billion a year earlier, according to Tesla’s earnings statement. In its auto segment, revenue also increased 16% to $16.2 billion from $14 billion a year ago. Tesla confirmed in the earnings deck that it plans to make “more affordable trims” of its Model Y SUV and Model 3 sedans.

The past year has been a challenge as rivals offer higher-tech but lower-cost models against Tesla’s aging lineup of electric vehicles. Tesla also faces an ongoing consumer backlash in response to CEO Elon Musk’s work with the Trump administration, his incendiary political rhetoric and endorsements of far-right political figures.

Earlier this month, Tesla reported 358,023 vehicle deliveries for the first quarter, which was lower than the prior quarter and up about 6% from a year earlier. Tesla has recorded annual declines in the past two years, with a drop in the year-ago quarter partially attributable to “the loss of several weeks of production,” as the company was upgrading Model Y factory lines.

Net income increased to $477 million, or 13 cents a share, from $409 million, or 12 cents a share, a year earlier.

Tesla’s automotive gross margins, excluding the sales of environmental regulatory credits, came in at 19.2%, higher than in any quarter last year. The company said margins were helped by higher average selling price and “lower average cost per vehicle due to lower material costs.”

In its energy segment, which sells solar installations and a range of battery energy storage systems, Tesla reported $2.41 billion in revenue for the quarter, down 12% from $2.73 billion in the year-ago period.

Musk has been trying to change the narrative by focusing on the company’s efforts in self-driving technology and humanoid robots. While the company is testing a small number of driverless cars in its ride-hailing service in Texas, Tesla still relies on EV sales for the bulk of its revenue, and doesn’t yet sell a robotaxi-ready vehicle.

This is breaking news. Please check back for updates.

WATCH: Tesla can only trade on hopes about the future for so long, says Cramer