Tesla Q1 revenue rises 16% to $22.39B, misses estimates

Tesla reported first-quarter 2026 revenue of $22.39 billion, a 16% increase from a year earlier, missing the $22.64 billion Wall Street estimate. Adjusted earnings per share were $0.41, above the $0.37 analysts expected. Net income rose to $477 million, or $0.13 a share, from $409 million, or $0.12 a year earlier. Tesla’s stock rose more than 4% in after-hours trading. The company delivered 358,023 vehicles in Q1, about 6% more than a year earlier.

Automotive revenue was $16.2 billion, up from $14.0 billion in the year-ago quarter. Automotive gross margin excluding regulatory credits was 19.2%, higher than any quarter in the prior year. Tesla wrote that the margin reflected a higher average selling price and a lower average cost per vehicle due to reduced material costs.

Energy revenue, which includes solar and battery storage, was $2.41 billion, down from $2.73 billion a year earlier. The carrying value of Tesla’s digital assets fell to $786 million from about $1.008 billion at the end of Q4 2025 because of fair-value adjustments tied to lower Bitcoin prices. The earnings report did not disclose any Bitcoin purchases or sales during the quarter.

Capital expenditures rose 67% to $2.49 billion from $1.49 billion a year earlier as spending shifted to robotics and self-driving development. In its earnings presentation, Tesla said preparations for a large-scale Optimus factory will begin in Q2 and that the first-generation line is planned with annual capacity of 1 million robots. The company plans to repurpose its Fremont, California, factory and end production of the Model S and Model X.

Tesla is testing a limited number of driverless vehicles in a ride-hailing service in Texas but does not sell a robotaxi-ready vehicle. The company said it plans to offer more affordable trims for the Model Y and Model 3 as the lineup ages and competition from lower-priced electric vehicles increases.

Through Wednesday’s close, Tesla was down about 14% year-to-date, the weakest performance among the largest technology and consumer companies. By comparison, Amazon has risen roughly 11% this year, Alphabet about 8%, Nvidia about 9%, and the S&P 500 around 4%.

Thomas Monteiro, an analyst at Investing.com and a Tesla investor, called cash flow the “real story,” noting a shift toward services and growing full-self-driving subscriptions could help support margins over time.