Tesla reported a mixed Q1 2026 with revenue growth driven by automotive and services, but impacted by a decline in energy generation and storage. The company is making significant investments in AI, infrastructure, and vertical integration to support future growth in Robotaxi, robotics, and energy businesses, while navigating geopolitical uncertainties.
Total revenues increased 16% YoY to $22.4B, driven by growth in automotive, services, and a positive FX impact.
positiveGAAP operating income increased 136% YoY to $0.9B, with operating margin improving to 4.2%.
positiveNon-GAAP net income grew 56% YoY to $1.5B, with diluted EPS up 52% YoY to $0.41.
positiveOperating cash flow increased 83% YoY to $3.9B, and free cash flow was $1.4B.
positiveActive FSD subscriptions grew 51% YoY to 1.28 million.
positiveEnergy generation and storage revenue decreased 12% YoY to $2.4B.
negativeTotal production decreased 5% YoY to 408,386 units, while total deliveries decreased 6% YoY to 358,023 units.
negativeGlobal vehicle inventory days of supply increased to 27 days from 15 days in the prior quarter.
attentionStorage deployed decreased 15% YoY to 8.8 GWh.
negativeOperating expenses increased 37% YoY to $3.8B, driven by AI and R&D projects.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Total automotive revenues | N/A | — | — | — |
Energy generation and storage revenue | N/A | — | — | — |
Services and other revenue | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| revenue | 16% YoY | Q1-2026 | directional | New |
| operating_income | 136% YoY | Q1-2026 | directional | New |
| operating_margin | 4.2% | Q1-2026 | point | New |
| cash_and_investments | $44.7B | Q1-2026 | point | New |
| cybercab_production | volume production starting in 2026 | 2026 | directional | New |
| tesla_semi_production | volume production starting in 2026 | 2026 | directional | New |
| megapack_3_production | volume production starting in 2026 | 2026 | directional | New |
| optimus_production | volume production | First-generation production lines | directional | New |
We commenced ramp of additional AI compute, new factories across battery and battery materials, and further prepared lines for start of production of Megapack 3, Cybercab and the Tesla Semi.
We saw continued growth in demand for our vehicles in markets in APAC and South America, while also seeing a rebound of demand in both EMEA and North America.
Our focus on affordability and utility across our vehicle lineup continues to be a key competitive advantage, particularly as gas-powered alternatives become more expensive.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.