Tesla reported a net income of $477 million for the first quarter of 2026. This marks a profitable quarter for the electric vehicle manufacturer. Revenue increased by 16 percent year over year, reaching $22.4 billion.
Automotive revenue also grew by 16 percent to $16.2 billion. Services revenue, including Supercharger fees, saw a 42 percent increase. However, the energy storage business experienced a decline, with revenues falling by 12 percent to $2.4 billion.
Operating margin for the quarter was 4.2 percent. This is an improvement from the previous year's 2 percent. Revenue from regulatory credits decreased to $380 million, down from $595 million in the first quarter of 2025. Operating expenses rose due to investments in artificial intelligence (AI) and compensation for Chief Executive Officer Elon Musk.
Tesla now reports active Full Self-Driving (FSD) subscriptions. These subscriptions have reached 1.3 million, a 51 percent increase from the same period last year. The company recently shifted to a subscription-only model for FSD, priced at $99 per month.
Future automotive plans focus on optimizing the vehicle product portfolio. The emphasis is on vehicles designed for a fully autonomous future. Tesla also announced plans for humanoid robot production, with a goal of building one million Optimus robots per year at its Fremont, California factory. A Texas production line is projected to produce ten million robots annually.
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