MUMBAI — Tesla reported a 16 percent increase in revenue for the first quarter of 2026, driven by higher vehicle prices, stronger services performance, and a surge in subscriptions to its Full Self-Driving (FSD) system.
The electric vehicle maker posted revenue of $22.38 billion for the quarter, up from $19.3 billion a year earlier. Automotive revenue rose to $16.2 billion from $13.96 billion in the same period last year.
Net income came in at $477 million, compared with $409 million in the first quarter of 2025. Free cash flow more than doubled to $1.44 billion, reflecting improved operational efficiency and one-time benefits related to warranties and tariffs.
Shares of Tesla rose about 4 percent following the earnings announcement.
The company reported deliveries of 358,023 vehicles during the quarter, falling short of analysts’ expectations of roughly 368,000 units. Production totaled 408,386 vehicles, significantly higher than deliveries.
Subscriptions to Tesla’s Full Self-Driving system climbed 51 percent year over year to 1.28 million, highlighting growing adoption of its advanced driver-assistance technology.
Chief Executive Officer Elon Musk has said the company is undergoing a major transition from its core electric vehicle business toward artificial intelligence and robotics.
Chief Financial Officer Vaibhav Taneja indicated that Tesla expects negative cash flow for the remainder of 2026, as capital expenditures are projected to reach $25 billion this year—roughly three times its historical spending levels.
Earlier this week, Tesla unveiled a new six-seater Model Y L in India, expanding its lineup with a family-oriented electric SUV. Bookings have opened online, with deliveries expected to begin in June.
The Model Y L will be available for public viewing starting April 23 at Tesla experience centers in Mumbai, Delhi, and Gurugram, the company said. (Source: IANS)
