Tesla Q1 2026 Net Income Reaches $477M on 16% Revenue Jump

Tesla posts $477 million in net income for Q1 2026, a more profitable quarter than the prior year, following delivery figures that showed over 6 percent sales growth compared to Q1 2025. Revenue rises 16 percent year over year to $22.4 billion, with automotive revenue matching that growth at $16.2 billion. Services and other revenue surges 42 percent, though energy storage revenue drops 12 percent to $2.4 billion.

Operating margin stands at 4.2 percent, improved from twice as bad in Q1 2025 despite higher operating expenses from AI investments and CEO Elon Musk's $1 trillion compensation package approved by shareholders in November. Regulatory credits generate $380 million, down from $595 million last year, alongside reduced leasing income.

Active Full Self-Driving subscriptions hit 1.3 million, up 51 percent year over year, after Tesla shifted to a $99 monthly fee from outright sales; Musk's pay ties partly to this metric. Tesla omits any small EV from plans, emphasizing portfolio optimization for fully autonomous vehicles.

For humanoid robots, Tesla plans Q2 capacity additions at its Fremont factory targeting 1 million Optimus units annually, with a Texas line capable of 10 million per year. An investor call follows the earnings release.