Tesla Q1 2026 Financial Overview
Tesla (NASDAQ: TSLA) reported its Q1 2026 earnings on April 22, surpassing analysts’ expectations with revenue of $22.4 billion, a 16% increase year-over-year. However, this figure is bolstered by a down quarter in Q1 2025 when revenue dropped by 9% to $19.3 billion due to factory modifications for the Model Y line. Tesla’s operating income rose by 136% year-over-year, driven in part by around $480 million in one-time benefits related to warranty adjustments and tariff refunds.
Despite a gross profit increase of 50% year-over-year and non-GAAP EPS of $0.41 (above expectations of $0.36), the company missed its vehicle delivery target. Additionally, it reported $1.4 billion in free cash flow, partly due to extending supplier payment terms from 61 to 71 days. Tesla anticipates negative cash flow for the remainder of the year, especially with planned expenditures of $25 billion.
