Tesla reported first quarter 2026 revenue of $22.4 billion, a 16% year-over-year increase, with non-GAAP EPS of $0.41. The results were driven by margin expansion, which offset a slight miss on revenue expectations and previously announced vehicle delivery figures of 358,023, up 6% from the prior year.
Key Highlights
- Automotive gross margin (excluding regulatory credits) came in at 19.2%, expanding significantly from 12.5% in the prior-year quarter and beating analyst expectations for stabilization.
- Growth was led by the Services and other segment, which saw revenue increase 42% YoY to $3.7 billion, while the Energy generation and storage segment declined 12% YoY to $2.4 billion.
- The company reported strong free cash flow of $1.4 billion, a 117% increase year-over-year, even after accounting for a $2.0 billion equity investment in SpaceX during the quarter.
- Tesla affirmed that Cybercab, Tesla Semi, and Megapack 3 are on schedule for volume production to start in 2026.