Tesla Q1 revenue rises, driven by EV sales and FSD subscriptions
TechCrunch • • general
Key Points:
- Tesla reported a 16% year-over-year revenue increase to $22.38 billion in Q1 2026, driven by higher automotive revenue of $16.2 billion and growth in services, including Full Self-Driving (FSD) subscriptions reaching 1.28 million.
- The company posted positive free cash flow of $1.44 billion, more than doubling the amount from Q1 2025, which surprised analysts expecting cash burn during the quarter.
- Tesla delivered 358,023 electric vehicles globally in Q1 2026, slightly below analyst expectations, while vehicle production outpaced deliveries at 408,386 units.
- Despite revenue and profit growth compared to the previous year, Tesla’s Q1 profits and revenue remain below the levels seen in the last three quarters of 2025, reflecting challenges from the expiration of the federal EV tax credit.
- CEO Elon Musk highlighted Tesla’s ongoing transition from an EV-focused company to one centered on AI and robotics, with preparations for a large-scale Optimus robot factory starting soon, though commercial robotaxi services remain limited.
