Tesla reports $22.4B Q1 revenue, $477M net income as sales grow 6%

Tesla reported first-quarter 2026 financial results showing continued profitability amid a polarized brand environment. The electric vehicle maker posted net income of $477 million for the quarter. Revenue increased 16 percent year over year to $22.4 billion. Automotive revenue grew by the same percentage to $16.2 billion, while services and other revenue rose 42 percent. The company's energy storage division saw revenues decline 12 percent to $2.4 billion. Tesla's operating margin reached 4.2 percent, an improvement from the prior year but well below the double-digit margins the company once reported. The company generated $380 million from regulatory credits, down from $595 million in the first quarter of 2025. Operating expenses increased due to spending on artificial intelligence and a portion of the compensation package for CEO Elon Musk that shareholders approved in November. The company had previously announced that first-quarter vehicle deliveries grew by a little more than 6 percent compared to the same period in 2025. Tesla's market valuation stood at approximately $1.21 trillion at the time of the report.