Tesla · Ars Technica
Tesla published its quarterly financials ahead of an investor call this afternoon
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And they knew from its delivery announcement earlier in April that the first quarter of 2026 was rather rosy, with sales growing by a little more than 6 percent compared to the same three months in 2025.
Key facts
- Although the company brought in more money from automotive sales, it only made $380 million from selling regulatory credits, compared to $595 million in Q1 2025
- Operating expenses rose due to spending on AI and part of the $1 trillion compensation package that shareholders approved in November for CEO Elon Musk
- Revenue increased by 16 percent year over year to $22.4 billion
- Automotive revenue grew by the same percentage to $16.2 billion, and Tesla saw a 42 percent increase in services (like Supercharger fees) and other revenue
Summary
Tesla published its quarterly financials ahead of an investor call this afternoon. Revenue increased by 16 percent year over year to $22.4 billion. An operating margin of 4.2 percent is far from the double-digit margins Tesla once boasted. Although the company brought in more money from automotive sales, it only made $380 million from selling regulatory credits, compared to $595 million in Q1 2025. Part of Musk’s compensation is now tied in part to the number of active full self-driving subscriptions, helped by Tesla recently ending the practice of selling the system outright in favor of a $99 per month fee. Although reports surfaced earlier this month about a possible small Tesla EV, the company makes no mention of it in its future automotive plans, noting only that it is “focused on optimizing our vehicle product portfolio, with an emphasis on vehicles designed for a fully autonomous future.”