Tesla Q1 2026 Financial Highlights
Tesla (NASDAQ: TSLA) reported a 16% year-over-year increase in total revenue, reaching $22.39 billion for Q1 2026, with a notable free cash flow rise to $1.44 billion, up from $664 million a year earlier. The company ended the quarter with 1.28 million active Full Self-Driving (Supervised) subscriptions, marking a 51% increase year-over-year.
Services and other revenue surged 42% to $3.75 billion, now constituting nearly 17% of total revenue. Gross margin improved to 21.1%, while operating margin decreased to 4.2%. Despite $2.49 billion in capital expenditures, the positive free cash flow provides financial flexibility as the company invests in growth initiatives, projecting capital expenditures to exceed $20 billion in 2026.
