Tesla Revenue Jumps 16% to $22.4B as Q1 2026 Net Income Rises to $477M

Tesla, Inc. (NASDAQ: TSLA), the electric vehicle and clean energy company, reported total revenue of $22.39 billion for the quarter ended March 31, 2026, up 16% from $19.34 billion in the year-ago quarter. Net income for the period rose to $477 million, compared with $409 million in the first quarter of 2025. Read more earnings reports.

Operating income more than doubled to $941 million from $399 million a year earlier, as gross profit expanded to $4.72 billion from $3.15 billion. The company's gross margin improved as cost of revenue rose to $17.67 billion, a 9% increase from $16.18 billion in Q1 2025, while revenue growth outpaced cost increases.

Automotive sales revenue climbed to $16.23 billion from $13.97 billion, a 16% year-over-year gain. Energy generation and storage revenue surged 42% to $3.75 billion from $2.64 billion. Services and other revenue declined to $2.41 billion from $2.73 billion in the prior-year period.

Operating expenses jumped 37% to $3.78 billion from $2.75 billion. Research and development spending increased to $1.95 billion from $1.41 billion, while selling, general and administrative expenses rose to $1.83 billion from $1.25 billion.

Cash from operations strengthened to $3.94 billion for the quarter, up 83% from $2.16 billion in Q1 2025. Cash from investing activities showed a net outflow of $5.02 billion, compared with $1.65 billion a year earlier. Financing activities generated $1.17 billion in cash, reversing a $332 million outflow in the prior-year quarter.

Total assets climbed to $143.72 billion as of March 31, 2026, up from $137.81 billion at year-end 2025. Cash and cash equivalents stood at $16.60 billion, a slight increase from $16.51 billion three months earlier. Short-term investments rose to $28.14 billion from $27.55 billion.

Inventory increased to $14.43 billion from $12.39 billion at the end of 2025. Accounts receivable declined to $3.96 billion from $4.58 billion. Accounts payable grew to $14.70 billion from $13.37 billion.

Total liabilities increased to $58.92 billion from $54.94 billion at year-end. Stockholders' equity rose to $84.12 billion from $82.14 billion. Long-term debt stood at $7.64 billion, up from $6.58 billion three months prior.

The company reported diluted earnings per share of $0.13, up from $0.12 in the first quarter of 2025. Basic earnings per share came in at $0.15, compared with $0.13 a year earlier. Weighted average diluted shares outstanding totaled 3.54 billion, up from 3.52 billion.

Retained earnings grew to $39.48 billion as of March 31, 2026, from $39.00 billion at the end of December 2025. Common shares outstanding increased to 3.76 billion from 3.75 billion.

Financial Summary