Tesla Q1 2026 Revenue Hits $22.39B; Net Profit Up 56% YoY Despite Missed Delivery Targets

Tesla reported total revenue of $22.39 billion for the first quarter of 2026, up 16% year-over-year but slightly below the market expectation of $22.64 billion. Adjusted net income came in at $1.453 billion, a 56% increase from the same period last year, with adjusted earnings per share (EPS) of $0.41—beating the expected $0.37. GAAP net income was $477 million, up 17% year-over-year. Gross margin improved significantly to 21.1% this quarter, compared to 16.3% in the same quarter last year. Automotive gross margin (excluding regulatory credits) reached 19.2%. Operating income surged 136% year-over-year to $941 million. Capital expenditures totaled $2.49 billion, up 67% year-over-year, while operating expenses rose 37% to $3.78 billion. The company is heavily reinvesting its profits into future-oriented businesses such as AI, robotics, and chips. Global vehicle deliveries reached 358,023 units, up 6% year-over-year but below the market forecast of 370,000 units. Deliveries of Model 3 and Model Y accounted for 341,893 units. Days of inventory supply increased to 27 days, up notably from 22 days a year ago and 15 days in the prior quarter, reflecting a production-to-delivery gap exceeding 50,000 vehicles. Production of the Model S and Model X has officially ended, and the former Fremont factory production lines will be repurposed for manufacturing the Optimus humanoid robot. Energy storage revenue was $2.41 billion, down 12% year-over-year, with deployments totaling 8.8 GWh, a 15% decline from the same period last year. The Full Self-Driving (FSD) subscription service now has 1.28 million active subscribers, up 51% year-over-year, adding a record 180,000 net new subscribers this quarter. Cumulative FSD miles driven have surpassed 17.7 billion kilometers, and unsupervised FSD has expanded to Dallas and Houston.