Tesla reported a net income of $477 million for the first quarter of 2026, marking improved profitability over the prior year. Revenue rose 16 percent to $22.4 billion, driven by higher automotive sales and services. The company highlighted growth in full self-driving subscriptions amid ongoing investments in AI and robotics.
Tesla released its Q1 2026 financial results on April 22, ahead of an investor call. The electric vehicle maker achieved $477 million in net income, up from a less profitable period in Q1 2025. Vehicle deliveries increased by more than 6 percent year over year, contributing to the gains. Automotive revenue climbed 16 percent to $16.2 billion, while services and other revenue surged 42 percent. Energy storage revenue, however, declined 12 percent to $2.4 billion, and regulatory credits brought in $380 million, down from $595 million last year. Operating expenses rose due to AI investments and portions of CEO Elon Musk's $1 trillion compensation package, approved by shareholders in November. The operating margin stood at 4.2 percent, an improvement from the prior year's lower figure. Tesla now reports 1.3 million active full self-driving subscriptions, a 51 percent increase, following a shift to a $99 monthly fee instead of outright sales. The company made no mention of a potential small EV, instead emphasizing optimization of its portfolio for autonomous vehicles. For its Optimus humanoid robots, Tesla plans to add capacity at its Fremont, California, factory in Q2 to produce 1 million units annually, with a Texas line targeting 10 million per year.
