Tesla Q1 2026 Update — reading text

Q1 2026 Update 1  Highlights 03 Financial Summary 04 Operational Summary 05 Manufacturing & Hardware 06 Supporting Infrastructure 07 AI & Software 08 Services 09 Outlook 10 Photos & Charts 11 Key Metrics 21 Financial Statements 24 Additional Information 30 2  HIGHLIGHTS SUMMARY Profitability $0.9B GAAP operating income We continued to make meaningful progress on the build out of the infrastructure and AI software that underpins our Robotaxi and future robotics businesses in Q1. We commenced $0.5B GAAP net income ramp of additional AI compute, new factories across battery and battery materials, and further prepared lines for start of production of Megapack 3, Cybercab and the Tesla Semi. We saw $1.5B non-GAAP net income1 continued growth in demand for our vehicles in markets in APAC and South America, while also seeing a rebound of demand in both EMEA and North America. We are making the necessary investments that will ensure our access to key materials and componentry in each region across vehicle, energy and AI as trade and geopolitics become more uncertain. In recent months, we have announced further regionalization and vertical Cash Operating cash flow of $3.9B integration of critical supply chains. Free cash flow2 of $1.4B Our focus on affordability and utility across our vehicle lineup continues to be a key competitive advantage, particularly as gas-powered alternatives become more expensive due to their $0.7B increase in our cash and investments3 reliance on a more sensitive and less flexible energy supply chain. We are excited about Tesla’s positioning in 2026 with tailwinds persisting for the autos business, our continued progress on FSD (Supervised) 4, the ramp of Robotaxi, progress on Optimus ahead of mass production and the growth of our energy production capacity. Operations Received approval for FSD (Supervised) 4 in Netherlands in April There remains significant effort and hard work to realize our mission of Amazing Abundance. As always, we are focused on maintaining a rapid pace of innovation in new and exciting Launched unsupervised Robotaxi rides in Dallas and Houston in April technologies – such as electrification, cutting-edge software and artificial intelligence – expanding our lead in advanced manufacturing and increasing supply chain resilience to ensure Began ramping lithium, cathode and LFP production we manage future risk to our scale. The future is incredibly bright. 3 (1) Excludes SBC (stock-based compensation) & Digital assets gains and losses, net of tax; (2) Free cash flow = operating cash flow less capex; (3) Includes cash, cash equivalents and short-term investments; (4)Active driver supervision required; does not make the vehicle autonomous; Note: all information herein refers to the current quarter unless otherwise noted.  FINANCIAL SUMMARY (Unaudited) ($ in millions, except percentages and per share data) Q1-2025 Q2-2025 Q3-2025 Q4-2025 Q1-2026 YoY Total automotive revenues 13,967 16,661 21,205 17,693 16,234 16% Energy generation and storage revenue 2,730 2,789 3,415 3,837 2,408 -12% Services and other revenue 2,638 3,046 3,475 3,371 3,745 42% Total revenues 19,335 22,496 28,095 24,901 22,387 16% Total gross profit 3,153 3,878 5,054 5,009 4,720 50% Total GAAP gross margin 16.3% 17.2% 18.0% 20.1% 21.1% 478 bp Operating expenses 2,754 2,955 3,430 3,600 3,779 37% Income from operations 399 923 1,624 1,409 941 136% Operating margin 2.1% 4.1% 5.8% 5.7% 4.2% 214 bp Adjusted EBITDA 2,814 3,401 4,227 4,154 3,668 30% Adjusted EBITDA margin 14.6% 15.1% 15.0% 16.7% 16.4% 183 bp Net income attributable to common stockholders (GAAP) 409 1,172 1,373 840 477 17% Net income attributable to common stockholders (non-GAAP) 934 1,393 1,770 1,761 1,453 56% EPS attributable to common stockholders, diluted (GAAP) 0.12 0.33 0.39 0.24 0.13 8% EPS attributable to common stockholders, diluted (non-GAAP) 0.27 0.40 0.50 0.50 0.41 52% Net cash provided by operating activities 2,156 2,540 6,238 3,813 3,937 83% Capital expenditures (1,492) (2,394) (2,248) (2,393) (2,493) 67% Free cash flow 664 146 3,990 1,420 1,444 117% Cash, cash equivalents and short-term investments 36,996 36,782 41,647 44,059 44,743 21% 4  OPERATIONAL SUMMARY (Unaudited) Q1-2025 Q2-2025 Q3-2025 Q4-2025 Q1-2026 YoY Model 3/Y production 345,454 396,835 435,826 422,652 394,611 14% Other models production 17,161 13,409 11,624 11,706 13,775 -20% Total production 362,615 410,244 447,450 434,358 408,386 13% Model 3/Y deliveries 323,800 373,728 481,166 406,585 341,893 6% Other models deliveries 12,881 10,394 15,933 11,642 16,130 25% Total deliveries 336,681 384,122 497,099 418,227 358,023 6% of which subject to operating lease accounting 13,721 6,670 10,230 10,996 3,430 -75% Cumulative deliveries(1) (all-time; mil) 7.6 8.0 8.5 8.9 9.2 21% Active FSD Subscriptions(2) (mil) 0.85 0.95 1.04 1.10 1.28 51% Total end of quarter operating lease (new vehicle) count(3) 179,930 172,882 167,163 163,075 151,991 -16% Global vehicle inventory (days of supply)(4) 22 24 10 15 27 23%