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

_Wednesday, April 22, 2026 at 8:19 PM EDT · Tech & Business · Latest · Tier 1 — Major_

![Tesla reports $22.4B Q1 revenue, $477M net income as sales grow 6% — Primary](https://cdn.arstechnica.net/wp-content/uploads/2025/09/GettyImages-2211638677-1152x648.jpg)

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.

## Sources

- [Ars Technica](https://arstechnica.com/cars/2026/04/tesla-reports-q1-2026-earnings-still-profitable/)

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Retrieved: 2026-04-23T04:09:47.184Z
Publisher: Tech & Business (techandbusiness.org)