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Get filing alertsTesla reorients toward AI, raises capex to >$22.4B; Q1 revenue +16%, operating income +136%
Filed April 23, 2026 · Period ending March 31, 2026 · Compared to 10-Q Apr 23, 2025 · ~2 min read
Key Financials
SEC XBRL| Metric | PriorMar 31, 2025 | CurrentMar 31, 2026 | Δ |
|---|---|---|---|
| Revenue | $19.3B | $22.4B | ▲ +15.8% |
| Net income | $409.0M | $477.0M | ▲ +16.6% |
| Diluted EPS | $0.12 | $0.13 | ▲ +16.1% |
| Operating income | $399.0M | $941.0M | ▲ +135.8% |
| Cash & equivalents | $16.4B | $16.6B | ▲ +1.5% |
| Long-term debt | $5.08B | $7.64B | ▲ +50.5% |
| Total assets | $125.1B | $143.7B | ▲ +14.9% |
As reported in XBRL by the filer · 10-Q vs 10-Q. Income figures cover the fiscal quarter (not year-to-date); cash & assets are period-end balances. n/m = not meaningful (sign change; a % would mislead). about this table · verify on EDGAR →
Key Number Changes
Prior filing · verify on EDGAR →
we currently expect our capital expenditures to exceed $10.00 billion in 2025.
Current filing · verify on EDGAR →
We currently expect our capital expenditures to be in excess of $25 billion in 2026, driven by our AI initiatives, including investments in compute infrastructure and data centers, the expansion and ramp of our manufacturing and R&D production lines and facilities, and growth in our fleet of company-operated AI-enabled assets and our retail, service and charging footprint.
Prior filing · verify on EDGAR →
During the three months ended March 31, 2025, we recognized total revenues of $19.34 billion, representing a decrease of $1.97 billion compared to the same period in the prior year. During the three months ended March 31, 2025, our net income attributable to common stockholders was $409 million, representing a decrease of $981 million compared to the same period in the prior year.
Current filing · verify on EDGAR →
During the three months ended March 31, 2026, we recognized total revenues of $22.39 billion, representing an increase of $3.05 billion compared to the same period in the prior year. During the three months ended March 31, 2026, our net income attributable to common stockholders was $477 million, representing an increase of $68 million compared to the same period in the prior year.
Prior filing · verify on EDGAR →
Automotive sales revenue decreased $3.54 billion, or 21%, in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, due to a decrease of approximately 51,000 combined Model 3 and Model Y cash deliveries in part from bringing down all of our vehicle factories simultaneously for the changeover to New Model Y. Additionally, we had a lower average selling price per unit driven by sales mix, higher customer incentives such as attractive financing options, and a negative impact from the strengthening of the United States dollar when compared to foreign currencies year over year, as well as a decrease of 5,000 deliveries of other models.
Current filing · verify on EDGAR →
Automotive sales revenue increased $2.55 billion, or 20%, in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 due to an increase of approximately 10% in cash deliveries, in part from bringing down all of our vehicle factories simultaneously for the changeover to the New Model Y in the prior period, and a higher average selling price per unit primarily driven by sales mix and a positive impact from the weakening of the United States dollar when compared to foreign currencies year over year.
Prior filing · verify on EDGAR →
Gross margin for total automotive decreased from 18.5% to 16.2% in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 primarily due to lower average selling price per unit, partially offset by lower average cost per unit and an increase in regulatory credits revenue, as discussed above.
Current filing · verify on EDGAR →
Gross margin for total automotive increased from 16.2% to 21.1% in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to the changes in automotive sales revenue and cost of automotive sales revenue and a decrease in regulatory credits revenue, as discussed above.
Prior filing · verify on EDGAR →
Services and other revenue increased $350 million, or 15%, in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase was primarily due to increases in paid Supercharging revenue, insurance services revenue, non-warranty maintenance services and collision revenue, used vehicle revenue and part sales revenue.
Current filing · verify on EDGAR →
Services and other revenue increased $1.11 billion, or 42%, in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to increases in used vehicle sales volume, non-warranty maintenance services and collision revenue, paid Supercharging sessions and automotive insurance business revenue.
Prior filing · verify on EDGAR →
Energy generation and storage revenue increased $1.10 billion, or 67%, in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase was primarily due to increases in Megapack and Powerwall deployments compared to the prior year, partially offset by a decrease in average selling price of Megapack.
Current filing · verify on EDGAR →
Energy generation and storage revenue decreased $322 million, or 12%, in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to decreases in Megapack and Powerwall deployments.
Prior filing · verify on EDGAR →
Gross margin for energy generation and storage increased from 24.6% to 28.8% in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase was primarily due to a higher proportion of our storage business, which operated at a higher gross margin, within the segment as compared to the prior period.
Current filing · verify on EDGAR →
Gross margin for energy generation and storage increased from 28.8% to 39.5% in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to the changes in energy generation and storage revenue and cost of energy generation and storage revenue, as discussed above.
Prior filing · verify on EDGAR →
Research and development (“R&D”) expenses increased $258 million, or 22%, in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 primarily due to an increase in AI programs and related costs.
Current filing · verify on EDGAR →
Research and development (“R&D”) expenses increased $537 million, or 38%, in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to increases in costs related to AI and other programs as we continue to expand our product roadmap and technologies and an increase in stock-based compensation of $145 million.
Prior filing · verify on EDGAR →
Selling, general and administrative (“SG&A”) expenses decreased $123 million, or 9%, in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 driven by a $52 million decrease in employee and labor costs, including professional services, a $30 million decrease in facilities related expenses, a $22 million decrease in stock-based compensation and a $19 million decrease in marketing expenses.
Current filing · verify on EDGAR →
Selling, general and administrative (“SG&A”) expenses increased $582 million, or 47%, in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, driven by a $294 million increase in stock-based compensation, a $139 million increase in employee and labor costs, including professional services, and an $87 million increase in operating expenses including legal charges.
Prior filing · verify on EDGAR →
Other (expense) income, net, changed unfavorably by $562 million in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The unfavorable change was primarily due a $125 million mark-to-market loss in the current period compared to a $335 million mark-to-market gain on our bitcoin digital assets in the prior period. Additionally, there were unfavorable fluctuations in foreign currency exchange rates on our intercompany balances.
Current filing · verify on EDGAR →
Other expense, net, changed unfavorably by $416 million in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to fluctuations in foreign currency exchange rates on our intercompany balances and mark-to-market adjustments on our bitcoin digital assets.
Prior filing · verify on EDGAR →
Our effective tax rate increased from 26% to 29% in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to the changes in the mix of our jurisdictional earnings.
Current filing · verify on EDGAR →
Our effective tax rate increased from 29% to 34% in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to changes in the mix of our jurisdictional earnings and the non-deductibility of stock-based compensation expense related to the 2025 CEO Performance Award.
Prior filing · verify on EDGAR →
We ended the first quarter of 2025 with $37.00 billion in cash and cash equivalents and investments, representing an increase of $433 million from the end of 2024.
Current filing · verify on EDGAR →
We ended the first quarter of 2026 with $44.74 billion in cash and cash equivalents and short-term investments, representing an increase of $684 million from the end of 2025.
Prior filing · verify on EDGAR →
Our cash flows provided by operating activities were $2.16 billion during the three months ended March 31, 2025, compared to $242 million during the same period ended March 31, 2024, representing an increase of $1.91 billion.
Current filing · verify on EDGAR →
Our cash flows provided by operating activities were $3.94 billion during the three months ended March 31, 2026, compared to $2.16 billion during the same period ended March 31, 2025, representing an increase of $1.78 billion.
Prior filing · verify on EDGAR →
Capital expenditures amounted to $1.49 billion during the three months ended March 31, 2025, compared to $2.78 billion during the same period ended March 31, 2024, representing a decrease of $1.29 billion.
Current filing · verify on EDGAR →
Capital expenditures amounted to $2.49 billion during the three months ended March 31, 2026, compared to $1.49 billion during the same period ended March 31, 2025, representing an increase of $1.00 billion.
Prior filing · verify on EDGAR →
Net cash flows from financing activities changed by $528 million to $332 million net cash outflows during the three months ended March 31, 2025 from $196 million net cash inflows during the three months ended March 31, 2024. The decrease was primarily due to a $710 million increase in repayments of debt and a $151 million decrease in proceeds from issuances of debt.
Current filing · verify on EDGAR →
Net cash flows from financing activities changed by $1.50 billion to $1.17 billion net cash inflows during the three months ended March 31, 2026 from $332 million net cash outflows during the three months ended March 31, 2025. The change was primarily due to a $3.71 billion increase in proceeds from issuances of debt, partially offset by a $2.23 billion increase in repayments of debt.
Prior filing · verify on EDGAR →
As of March 31, 2025, we and our subsidiaries had outstanding $7.27 billion in aggregate principal amount of indebtedness, of which $2.17 billion is current.
Current filing · verify on EDGAR →
As of March 31, 2026, we and our subsidiaries had outstanding $9.04 billion in aggregate principal amount of indebtedness, of which $1.38 billion is current.
Prior filing · verify on EDGAR →
Our maximum exposure on the guarantees we provide if they are unable to sell the vehicle at or above the vehicle’s contractual residual value at the end of the lease term was $1.90 billion and $1.45 billion as of March 31, 2025 and December 31, 2024, respectively.
Current filing · verify on EDGAR →
Our maximum exposure on the guarantees we provide if they are unable to sell the vehicle at or above the vehicle’s contractual residual value at the end of the lease term was $3.67 billion and $3.45 billion as of March 31, 2026 and December 31, 2025, respectively.
Prior filing · verify on EDGAR →
As of March 31, 2025, total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an original expected length of more than one year was $4.58 billion. Of this amount, we expect to recognize $1.46 billion in the next 12 months and the rest over the remaining performance obligation period. Additionally, changes in regulations on automotive regulatory credits may significantly impact our remaining performance obligations and revenue to be recognized under these contracts.
Current filing · verify on EDGAR →
As of March 31, 2026, total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an original expected length of more than one year was $303 million. Of this amount, we expect to recognize $198 million in the next 12 months and the rest over the remaining performance obligation period. Changes in regulations on automotive regulatory credits may significantly impact our remaining performance obligations and revenue to be recognized under these contracts. Recent governmental and regulatory actions have restricted certain regulatory credit programs tied to our products.
Prior filing · verify on EDGAR →
As of March 31, 2025, total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an original expected length of more than one year was $9.95 billion. Of this amount, we expect to recognize $4.71 billion in the next 12 months and the rest over the remaining performance obligation period.
Current filing · verify on EDGAR →
As of March 31, 2026, total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an original expected length of more than one year was $10.15 billion. Of this amount, we expect to recognize $5.02 billion in the next 12 months and the rest over the remaining performance obligation period.
Prior filing · verify on EDGAR →
Our effective tax rate was 29% for the three months ended March 31, 2025, compared to 26% for the three months ended March 31, 2024. The change in our effective tax rate was primarily due to the changes in the mix of our jurisdictional earnings.
Current filing · verify on EDGAR →
Our effective tax rate was 34% for the three months ended March 31, 2026 compared to 29% for the three months ended March 31, 2025. The change in our effective tax rate was primarily due to changes in the mix of our jurisdictional earnings and the non-deductibility of stock-based compensation expense related to the 2025 CEO Performance Award.
Key Changes
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high
Company replaced its sustainable-energy mission with an AI-first mandate, positioning EVs and energy storage as operational leverage for AI products (FSD, Robotaxi, Optimus). Began Cybercab pilot production and large-scale Optimus manufacturing preparations in Q1 2026.
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high
Capex guidance raised 150% to >$25B for 2026 (from >$10B in 2025), driven by AI compute infrastructure, data centers, company-operated Robotaxi fleet, and semiconductor fabrication. Q1 capex rose 67% YoY to $2.49B.
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high
Invested $2.0B in SpaceX common stock in March 2026 (<1% ownership, equity-method accounting). Separately, agreed to acquire an AI hardware company for up to $2.0B in stock, $1.8B contingent on technology deployment milestones.
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high
Granted 2025 CEO Performance Award of 423.7M shares tied to market-cap milestones ($2.0T–$8.5T) and operational targets. Unrecognized expense: $10B–$120B depending on milestone achievement. Q1 2026 expense: $260M; effective tax rate rose 500bp to 34% partly due to non-deductible award expense.
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high
Automotive gross margin expanded 490bp YoY to 21.1% despite regulatory credit revenue falling 36% as recent governmental actions restricted certain credit programs. Unsatisfied regulatory credit performance obligations collapsed 93% to $303M (from $4.58B).
Summary
Tesla executed a strategic reorientation in Q1 2026, replacing its sustainable-energy mission with a focus on "bringing artificial intelligence into the real world." The company now frames its EV and energy businesses as operational leverage for AI products: FSD (Supervised), Robotaxi (launched June 2025, now scaling), and Optimus humanoid robots (entering large-scale production preparations).
Cybercab pilot production began in Q1, and the company is building dedicated Robotaxi infrastructure (cleaning, maintenance, charging, teleoperations, fleet management) and expanding into semiconductor fabrication to support AI and autonomy initiatives.
Financially, Q1 2026 delivered strong results: revenue rose 15.8% YoY to $22.4B, operating income surged 136% to $941M, and automotive gross margin expanded 490bp to 21.1%. The margin improvement came despite a 36% decline in regulatory credit revenue, as recent governmental actions restricted certain credit programs and unsatisfied credit performance obligations collapsed 93% to $303M. Services revenue accelerated to 42% YoY growth, driven by used vehicles, Supercharging, and insurance. Energy storage revenue fell 12% on lower deployments, but gross margin expanded 1,070bp to 39.5% on cost reductions and one-time tariff benefits. Operating cash flow rose 82% to $3.94B, supporting the elevated investment plan. The company raised full-year capex guidance 150% to >$25B (from >$10B in 2025), driven by AI compute infrastructure, data centers, company-operated AI-enabled assets (Robotaxi fleet), and manufacturing expansion. In March 2026, Tesla invested $2.0B in SpaceX common stock (<1% ownership, equity-method accounting), and in April 2026 agreed to acquire an AI hardware company for up to $2.0B in stock ($1.8B contingent on technology deployment milestones). The company granted a new 2025 CEO Performance Award of 423.7M shares tied to market-cap milestones ($2.0T–$8.5T) and operational targets, with $10B–$120B in unrecognized expense depending on milestone achievement; Q1 expense was $260M, contributing to a 500bp effective tax rate increase to 34%. On the legal front, the Delaware Supreme Court reduced the directors' compensation settlement attorney fee award from $176M to $71M, and multiple derivative lawsuits (X Corp./xAI, going-private, SEC oversight) were dismissed. A new securities class action alleges FSD/Robotaxi misrepresentations (April 2023–June 2025 class period), and a Florida jury awarded $329M in damages ($129M compensatory, $200M punitive) in an Autopilot product liability case; Tesla appealed both. A February 2026 Supreme Court ruling invalidated certain IEEPA tariffs, potentially entitling Tesla to refunds, though none are recognized due to uncertainty. Watch for Q2 Robotaxi scaling metrics, AI capex deployment pace, and resolution of the securities and product liability appeals. Quarterly results not summarized above: net income of $477.0M against $409.0M a year earlier, and diluted EPS of $0.13 against $0.12 a year earlier.
Section-by-Section Diff
Legal Proceedings
Directors' compensation settlement finalized with reduced attorney fees; derivative lawsuits dismissed; new securities class action and product liability verdict.
Previous filing · verify on EDGAR →
The Company disagrees with the amount of attorneys’ fees awarded by the court. On February 10, 2025, Tesla appealed the attorneys’ fee award amount to the Delaware Supreme Court.
Current filing · verify on EDGAR →
On January 30, 2026, the Delaware Supreme Court affirmed the Court of Chancery’s approval of the settlement agreement, resolving the derivative claims related to board compensation. The Court then significantly reduced the attorney fee award from $176 million to $71 million.
The Delaware Supreme Court affirmed the settlement and reduced the attorney fee award from $176 million to $71 million. The baseline disclosed Tesla's appeal of the $176 million fee; the current filing reports the appeal's resolution with a $105 million reduction in fees owed.
Removed from previous filing · verify on EDGAR →
On June 4, 2018, a purported Tesla stockholder filed a putative class and derivative action in the Delaware Court of Chancery against Elon Musk and the members of Tesla’s board of directors as then constituted, alleging corporate waste, unjust enrichment and that such board members breached their fiduciary duties by approving the stock-based compensation plan awarded to Elon Musk in 2018 (the “2018 CEO Performance Award”). Trial was held November 14-18, 2022. On January 30, 2024, the Court issued an opinion finding that the 2018 CEO Performance Award should be rescinded. Plaintiff’s counsel filed a brief seeking a fee award of 29,402,900 Tesla shares, plus expenses of $1,120,115.50. Tesla opposed the fee request, and at Tesla’s 2024 Annual Meeting of Stockholders, 72% of the disinterested voting shares of Tesla, excluding shares owned by Mr. Musk and Kimbal Musk, voted to ratify the 2018 CEO Performance Award. Because Tesla’s disinterested stockholders voted to ratify the 2018 CEO Performance Award, Mr. Musk and the other director defendants, joined by Tesla, filed a brief seeking to revise the Court’s January 30, 2024 opinion. On December 2, 2024, the Court issued an opinion denying the motion to revise the Court’s January 30, 2024 opinion and awarded Plaintiff’s counsel fees in the amount of $345 million. A final judgment was entered by the Court, and the director defendants and Tesla appealed the decisions to the Delaware Supreme Court. Tesla and the Director Defendants filed their response briefs on March 11, 2025. Plaintiff’s opening brief is due on April 25, 2025, and reply briefs are due on May 16, 2025. If the appeal to the Delaware Supreme Court were unsuccessful, it could result in a material adverse impact on our business and reported earnings due to the uncertainty and potentially significant costs associated with replacing or revising Mr. Musk’s compensation package, the types of which were described in our 2024 proxy statement.
The baseline warned of material adverse impact if the appeal were unsuccessful; the current filing's silence suggests the appeal may have concluded or the matter is no longer deemed material for 10-Q disclosure, though no explicit resolution is stated.
Previous filing · verify on EDGAR →
Between October 17, 2018 and March 8, 2021, seven derivative lawsuits were filed in the Delaware Court of Chancery, purportedly on behalf of Tesla, against Mr. Musk and the members of Tesla’s board of directors, as constituted at relevant times, in relation to statements made and actions connected to a potential going private transaction, with certain of the lawsuits challenging additional Twitter posts by Mr. Musk, among other things. Several of those actions were consolidated, and all have been stayed. In addition to these cases, two derivative lawsuits were filed on October 25, 2018 and February 11, 2019 in the U.S. District Court for the District of Delaware, purportedly on behalf of Tesla, against Mr. Musk and the members of the Tesla board of directors as then constituted. Those cases have also been consolidated.
Current filing · verify on EDGAR →
Between October 17, 2018 and March 8, 2021, seven derivative lawsuits were filed in the Delaware Court of Chancery, purportedly on behalf of Tesla, against Mr. Musk and the members of Tesla’s board of directors, as constituted at relevant times, in relation to statements made and actions connected to a potential going private transaction, with certain of the lawsuits challenging additional Twitter posts by Mr. Musk, among other things. Several of those actions were consolidated. In addition to these cases, two derivative lawsuits were filed on October 25, 2018 and February 11, 2019 in the U.S. District Court for the District of Delaware, purportedly on behalf of Tesla, against Mr. Musk and the members of the Tesla board of directors as then constituted. All of these cases have been dismissed through stipulations and orders.
The going-private derivative lawsuits, which were stayed or consolidated in the baseline, have now been dismissed through stipulations and orders. This resolves long-standing litigation related to Mr. Musk's 2018 going-private statements.
Previous filing · verify on EDGAR →
On October 21, 2022, a lawsuit was filed in the Delaware Court of Chancery by a purported shareholder of Tesla alleging, among other things, that board members breached their fiduciary duties in connection with their oversight of the Company’s 2018 settlement with the SEC, as amended. Among other things, the plaintiff seeks reforms to the Company’s corporate governance and internal procedures, unspecified damages, and attorneys’ fees. The lawsuit has been stayed.
Current filing · verify on EDGAR →
On October 21, 2022, a lawsuit was filed in the Delaware Court of Chancery by a purported shareholder of Tesla alleging, among other things, that board members breached their fiduciary duties in connection with their oversight of the Company’s 2018 settlement with the SEC, as amended. Among other things, the plaintiff sought reforms to the Company’s corporate governance and internal procedures, unspecified damages, and attorneys’ fees. On March 30, 2026, the plaintiff voluntarily dismissed the case.
The lawsuit challenging board oversight of the 2018 SEC settlement, which was stayed in the baseline, was voluntarily dismissed by the plaintiff on March 30, 2026. This resolves another derivative action related to the 2018 going-private episode.
Previous filing · verify on EDGAR →
Before converting from a Delaware to Texas corporation on June 13, 2024, three separate derivative actions brought by purported Tesla stockholders were filed in the Delaware Court of Chancery on May 24, June 10 and June 13, 2024, purportedly on behalf of Tesla, against current and former directors regarding topics involving Elon Musk and others, X Corp. (formerly Twitter) and x.AI. These suits assert various claims, including breach of fiduciary duty and breach of contract, and seek unspecified damages and other relief. On August 6, 2024, the plaintiffs in these three actions moved to consolidate the matters into a single case. The Court consolidated two of the three cases. Tesla and the directors filed motions to dismiss on April 4, 2025.
Current filing · verify on EDGAR →
Before converting from a Delaware to Texas corporation on June 13, 2024, three separate derivative actions brought by purported Tesla stockholders were filed in the Delaware Court of Chancery on May 24, June 10 and June 13, 2024, purportedly on behalf of Tesla, against current and former directors regarding topics involving Elon Musk and others, X Corp. (formerly Twitter) and xAI. These suits asserted various claims, including breach of fiduciary duty and breach of contract, and sought unspecified damages and other relief. On August 6, 2024, the plaintiffs in these three actions moved to consolidate the matters into a single case. The Court consolidated two of the three cases. Tesla and the directors filed motions to dismiss, and oral argument on those motions occurred on October 22, 2025. On April 2, 2026, these cases were reassigned to a different judge. On April 13, 2026, the Court granted Tesla’s motions to dismiss and dismissed the cases.
The derivative lawsuits involving X Corp. and xAI, which were pending motions to dismiss in the baseline, were dismissed by the Court on April 13, 2026, after oral argument and reassignment to a different judge. This resolves claims related to Mr. Musk's involvement with other entities.
Previous filing · verify on EDGAR →
On February 9, 2022, the California Civil Rights Department (“CRD,” formerly “DFEH”) filed a civil complaint against Tesla in Alameda County, California Superior Court, alleging systemic race discrimination, hostile work environment and pay equity claims, among others. CRD’s amended complaint seeks monetary damages and injunctive relief. The case is currently in discovery. Trial is scheduled for September 15, 2025.
Current filing · verify on EDGAR → · paraphrased
On February 9, 2022, the California Civil Rights Department ("CRD," formerly "DFEH") filed a civil complaint against Tesla in Alameda County, California Superior Court, alleging systemic race discrimination, hostile work environment and pay equity claims, among others. CRD's amended complaint seeks monetary damages and injunctive relief. The trial is currently set for July 20, 2026.
The trial date for the CRD race discrimination case has been rescheduled from September 15, 2025, to July 20, 2026, a delay of approximately $176 million ten months. The case remains in active litigation.
Previous filing · verify on EDGAR → · paraphrased
On September 14, 2022, a proposed class action was filed against Tesla, Inc. and related entities in the U.S. District Court for the Northern District of California, alleging various claims about the Company's driver assistance technology systems under state and federal law. This case was later consolidated with several other proposed class actions, and a Consolidated Amended Complaint was filed on October 28, 2022, which seeks damages and other relief on behalf of all persons who purchased or leased from Tesla between January 1, 2016, to the present. On October 5, 2022, a proposed class action complaint was filed in the U.S. District Court for the Eastern District of New York asserting similar state and federal law claims against the same defendants. On September 30, 2023, the Court dismissed this action with leave to amend the complaint. On November 20, 2023, the plaintiff moved to amend the complaint, which Tesla opposed. On August 8, 2024, the Court denied the plaintiff's motion for leave to file an amended complaint and entered judgment for Tesla. On September 5, 2024, the plaintiff filed a notice of appeal to United States Court of Appeals for the Second Circuit, and oral argument occurred on March 20, 2025. On March 22, 2023, the plaintiffs in the Northern District of California consolidated action filed a motion for a preliminary injunction to order Tesla to (1) cease using the term "Full Self-Driving Capability" (FSD Capability), (2) cease the sale and activation of FSD Capability and deactivate FSD Capability on Tesla vehicles, and (3) provide certain notices to consumers about proposed court-findings about the accuracy of the use of the terms Autopilot and FSD Capability. Tesla opposed the motion. On September 30, 2023, the Court denied the request for a preliminary injunction, compelled four of five plaintiffs to arbitration, and dismissed the claims of the fifth plaintiff with leave to amend the complaint. On October 31, 2023, the remaining plaintiff in the Northern District of California action filed an amended complaint, which Tesla moved to dismiss, and on May 15, 2024, the Court granted in part and denied in part Tesla's motion. On October 2, 2023, a similar proposed class action was filed in San Diego County Superior Court in California. Tesla subsequently removed the San Diego County case to federal court and on January 8, 2024, the federal court granted Tesla's motion to transfer the case to the U.S. District Court for the Northern District of California. Tesla moved to compel arbitration, which the plaintiff did not oppose, and on June 27, 2024, the Court stayed the case pending arbitration.
Current filing · verify on EDGAR → · paraphrased
On September 14, 2022, a proposed class action was filed against Tesla, Inc. and related entities in the U.S. District Court for the Northern District of California, alleging various claims about the Company's driver assistance technology systems under state and federal law. This case was later consolidated with several other proposed class actions, and a Consolidated Amended Complaint was filed on October 28, 2022, which seeks damages and other relief on behalf of all persons who purchased or leased from Tesla between January 1, 2016, to the present. On March 22, 2023, the plaintiffs filed a motion for a preliminary injunction to order Tesla to (1) cease using the term "Full Self-Driving Capability" (FSD Capability), (2) cease the sale and activation of FSD Capability and deactivate FSD Capability on Tesla vehicles, and (3) provide certain notices to consumers about proposed court-findings about the accuracy of the use of the terms Autopilot and FSD Capability. Tesla opposed the motion. On September 30, 2023, the Court denied the request for a preliminary injunction, compelled four of five plaintiffs to arbitration, and dismissed the claims of the fifth plaintiff with leave to amend the complaint. On October 31, 2023, the remaining plaintiff filed an amended complaint, which Tesla moved to dismiss, and on May 15, 2024, the Court granted in part and denied in part Tesla's motion. On May 6, 2025, the plaintiff filed a motion for class certification, which Tesla opposed, and on August 18, 2025, the Court certified a limited class comprised of California consumers who are not subject to an arbitration agreement. On September 1, 2025, Tesla filed a petition in the United States Court of Appeals for the Ninth Circuit for permission to appeal the class certification order, and on December 18, 2025, the Ninth Circuit granted Tesla's petition. On January 5, 2026, the district court stayed the case pending resolution of the proceedings before the Ninth Circuit. Tesla filed its opening brief in the Ninth Circuit on March 12, 2026, and the plaintiff filed a response brief on April 13, 2026.
The Northern District of California Autopilot/FSD class action has progressed significantly: the Court certified a limited class of California consumers on August 18, 2025; Tesla appealed the class certification to the Ninth Circuit, which granted permission on December 18, 2025; the district court stayed the case on January 5, 2026; and briefing in the Ninth Circuit is now underway (Tesla's opening brief filed March 12, 2026, plaintiff's response April 13, 2026). The baseline disclosed earlier procedural stages; the current filing reflects the class certification and the interlocutory appeal, which are material developments in this high-profile consumer litigation.
Added in current filing · verify on EDGAR →
On August 4, 2025, a proposed class action was filed in the U.S. District Court Western District of Texas against Tesla, Inc., Elon Musk, and certain current and former Company executives. The complaint alleges that the defendants violated federal securities laws through alleged material misrepresentations in public filings regarding the effectiveness of Autopilot, Full-Self Driving (Supervised), and Robotaxi. The complaint seeks monetary damages and other relief on behalf of persons who purchased Tesla stock between April 19, 2023, and June 22, 2025. The plaintiffs filed an amended complaint on February 17, 2026, and Tesla moved to dismiss the amended complaint on April 20, 2026.
A new securities class action was filed on August 4, 2025, in the Western District of Texas, alleging federal securities law violations related to alleged misrepresentations about Autopilot, FSD (Supervised), and Robotaxi. The class period runs from April 19, 2023, to June 22, 2025. Plaintiffs amended their complaint on February 17, 2026, and Tesla moved to dismiss on April 20, 2026. This is a new securities fraud case not present in the baseline.
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On February 27, 2023, a proposed class action was filed in the U.S. District Court for the Northern District of California against Tesla, Inc., Elon Musk and certain current and former Company executives. The complaint alleges that the defendants made material misrepresentations and omissions about the Company’s Autopilot and FSD Capability technologies and seeks money damages and other relief on behalf of persons who purchased Tesla stock between February 19, 2019, and February 17, 2023. An amended complaint was filed on September 5, 2023, naming only Tesla, Inc. and Elon Musk as defendants. On November 6, 2023, Tesla moved to dismiss the amended complaint. On September 30, 2024, the Court granted Tesla’s motion to dismiss without prejudice. On November 26, 2024, the court issued a final judgment in Tesla’s favor, and on December 23, 2024, the plaintiffs filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit.
The Northern District of California securities class action (filed February 27, 2023, class period February 19, 2019, to February 17, 2023) is no longer disclosed in the current filing. The baseline reported a final judgment in Tesla's favor on November 26, 2024, and a plaintiff appeal filed December 23, 2024. The current filing's omission suggests the appeal may have concluded or the matter is no longer deemed material for 10-Q disclosure.
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On August 1, 2025, a jury in the U.S. District Court for the Southern District of Florida reached a verdict in a product liability trial relating to certain allegations regarding the use of our Autopilot technology in a 2019 accident that resulted in a fatality and injuries. The jury awarded $129 million in total compensatory damages, finding the driver 67% at fault and the Company 33% at fault. The jury also awarded $200 million in punitive damages. On September 15, 2025, the Company filed a post-trial motion for judgment as a matter of law or, in the alternative, a new trial on all issues or an amended judgment to lesser compensatory and punitive damages. On February 19, 2026, the Court denied the Company’s post-trial motions, and on March 16, 2026, the Company filed a notice of appeal with the U.S. Court of Appeals for the Eleventh Circuit. Although we believe that the facts and law do not justify the damages awarded, the Company has recorded an immaterial accrual.
A jury in the Southern District of Florida awarded $129 million in compensatory damages (33% Tesla fault) and $200 million in punitive damages in a product liability trial related to a 2019 Autopilot-involved accident. The Court denied Tesla's post-trial motions on February 19, 2026, and Tesla appealed to the Eleventh Circuit on March 16, 2026. Tesla has recorded an immaterial accrual. This is a new, high-profile adverse verdict not present in the baseline.
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In February 2026, the U.S. Supreme Court issued a ruling invalidating certain tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA). As a result of this ruling, we may be eligible for a refund of tariffs previously paid on imported goods. As the recoverability and timing of any such refund remains uncertain, we have not recognized a receivable and corresponding offset to expense or asset as of March 31, 2026 and will not until such amounts are realized or realizable. We continue to monitor these developments and their potential impact on our results of operations, including reduction of revenue for any potential refunds to certain energy storage customers for which a contractual obligation exists.
A February 2026 U.S. Supreme Court ruling invalidated certain IEEPA tariffs, potentially entitling Tesla to refunds on previously paid tariffs. Tesla has not recognized a receivable due to uncertainty about recoverability and timing. The company also notes potential revenue reductions if contractual obligations require refunding certain energy storage customers. This is a new contingent asset/liability disclosure not present in the baseline.
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We regularly receive requests for information, including subpoenas, from regulators and governmental authorities such as the National Highway Traffic Safety Administration, the National Transportation Safety Board, the Securities and Exchange Commission (“SEC”), the Department of Justice (“DOJ”), and various local, state, federal, and international agencies. The ongoing requests for information include topics such as operations, technology (e.g., vehicle functionality, vehicle incidents, Autopilot and FSD Capability), compliance, finance, data privacy, and other matters related to Tesla’s business, its personnel, and related parties.
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We regularly receive requests for information, including subpoenas, from regulators and governmental authorities such as the National Highway Traffic Safety Administration, the National Transportation Safety Board, the SEC, the Department of Justice (“DOJ”), and various local, state, federal, and international agencies. The ongoing requests for information include topics such as operations, technology (e.g., vehicle functionality, vehicle incidents, Autopilot and FSD Capability and Robotaxi), compliance, finance, data privacy, and other matters related to Tesla’s business, its personnel, and related parties.
The current filing adds "Robotaxi" to the list of technology topics subject to ongoing regulatory requests for information. The baseline listed Autopilot and FSD Capability; the current filing explicitly includes Robotaxi, reflecting expanded regulatory scrutiny of Tesla's autonomous vehicle initiatives.
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On June 16, 2022, two Tesla stockholders filed separate derivative actions in the U.S. District Court for the Western District of Texas, purportedly on behalf of Tesla, against certain of Tesla’s current and former directors. Both suits assert claims for breach of fiduciary duty, unjust enrichment, and violation of the federal securities laws in connection with alleged race and gender discrimination and sexual harassment. Among other things, plaintiffs seek declaratory and injunctive relief, unspecified damages payable to Tesla, and attorneys’ fees. On July 22, 2022, the Court consolidated the two cases and on September 6, 2022, plaintiffs filed a consolidated complaint. On November 7, 2022, the defendants filed a motion to dismiss the case and on September 15, 2023, the Court dismissed the action but granted plaintiffs leave to file an amended complaint. On November 2, 2023, plaintiff filed an amended complaint purportedly on behalf of Tesla, against Elon Musk. On December 19, 2023, the defendants moved to dismiss the amended complaint, which the Court granted on April 12, 2024, with leave for plaintiffs to amend. On May 15, 2024, plaintiffs filed a second amended consolidated complaint purportedly on behalf of Tesla, against Mr. Musk. On July 1, 2024, the defendants moved to dismiss the second amended consolidated complaint. On March 12, 2025, the Court granted the motion to dismiss, dismissing the plaintiffs’ complaint with prejudice.
The derivative action in the Western District of Texas related to alleged discrimination and harassment, which was dismissed with prejudice on March 12, 2025, is no longer disclosed in the current filing. This is a lifecycle removal — the case concluded in the prior period and is no longer current litigation.
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On March 14, 2023, a proposed class action was filed against Tesla, Inc. in the U.S. District Court for the Northern District of California. Several similar complaints were also filed in the same court and these cases have now all been consolidated. These complaints allege that Tesla violates federal antitrust and warranty laws through its repair, service, and maintenance practices and seeks, among other relief, damages for persons who paid Tesla for repairs services or Tesla compatible replacement parts from March 2019 to March 2023. On July 17, 2023, these plaintiffs filed a consolidated amended complaint. On September 27, 2023, the court granted Tesla’s motion to compel arbitration as to three of the plaintiffs, and on November 17, 2023, the court granted Tesla’s motion to dismiss without prejudice. The plaintiffs filed a Consolidated Second Amended Complaint on December 12, 2023, which Tesla moved to dismiss. Plaintiffs also appealed the court’s arbitration order, which was denied. On June 17, 2024, the Court granted in part and denied in part Tesla’s motion to dismiss the Consolidated Second Amended Complaint. On February 18, 2025, the plaintiffs filed a Third Consolidated Amended Class Action Complaint that removed the claims for monetary damages.
The antitrust/warranty class action related to repair and service practices, which was active in the baseline (plaintiffs filed a Third Consolidated Amended Complaint on February 18, 2025, removing monetary damages claims), is no longer disclosed in the current filing. This is a lifecycle removal — the case may have settled, been dismissed, or is no longer deemed material for 10-Q disclosure.
The data incident class action (filed August 5, 2023, in the Northern District of California) is no longer disclosed in the current filing. The baseline reported the incident and the putative class action; the current filing's omission suggests the case may have settled, been dismissed, or is no longer deemed material for 10-Q disclosure.
The Eastern District of New York Autopilot/FSD class action, which was on appeal to the Second Circuit (oral argument March 20, 2025), is no longer disclosed in the current filing. The baseline reported judgment for Tesla and a pending appeal; the current filing's omission suggests the appeal may have concluded or the matter is no longer deemed material for 10-Q disclosure.
This is a lifecycle removal — the case was stayed for arbitration and is no longer active in court.
The disclosure about operating lease arrangements in Buffalo, NY, and Shanghai, China, is no longer included in the current filing. The baseline confirmed Tesla had met and expected to meet the requirements; the current filing's omission suggests the arrangements are no longer deemed material for 10-Q disclosure or have been satisfied.
MD&A
Q1 2026 revenue +16% YoY to $22.4B; operating income +136% to $941M; capex guidance raised to >$25B (from >$10B) for AI/compute infrastructure.
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Our mission is to accelerate the world’s transition to sustainable energy. We design, develop, manufacture, lease and sell high-performance fully electric vehicles, solar energy generation systems and energy storage products. We also offer maintenance, installation, operation, charging, insurance, financial and other services related to our products. Additionally, we are increasingly focused on products and services based on AI, robotics and automation.
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We are focused on bringing artificial intelligence into the real world, through products and services like FSD (Supervised) and Robotaxi, as well as working to develop and commercialize AI robots (including Optimus). We intend to leverage our current operations, in which we design, develop, manufacture, sell and lease high-performance fully electric vehicles and energy generation and storage systems that increasingly deliver AI-related and enhanced software and services to our customers, to achieve that objective.
The company replaced its "accelerate the world's transition to sustainable energy" mission statement with a focus on "bringing artificial intelligence into the real world." The new framing positions EVs and energy storage as means to achieve AI objectives (FSD, Robotaxi, Optimus), rather than as the core mission. This reflects a strategic reorientation toward AI-first products and services, with the legacy automotive and energy businesses now described as operational leverage for AI commercialization.
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We have continued to expand and refine our Robotaxi service after its June 2025 launch, capitalizing on our AI investments and scalable mobility infrastructure to advance a service-driven business model.
The company disclosed that it launched a Robotaxi service in June 2025 and is now scaling it. This represents a new revenue stream and business model (service-driven vs. vehicle sales), with implications for capital allocation, infrastructure investment, and long-term margin profile. The baseline filing made no reference to an operational Robotaxi service.
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In the first quarter of 2026, we made significant progress towards these objectives as we began pilot production of Cybercab, as well as ramps across our new battery and material factories, including cathode material and lithium refining in Texas.
The company began pilot production of Cybercab (the purpose-built Robotaxi vehicle) in Q1 2026. This milestone indicates the product is moving from development to manufacturing, with implications for capex, production capacity allocation, and the timeline for scaling the Robotaxi service. The baseline filing described Cybercab as under construction at Gigafactory Texas.
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We are also capitalizing on our strengths in real-world AI data to advance the development of Optimus, a general purpose, autonomous humanoid robot, as we make preparations and investments in large-scale production.
The company is now making preparations and investments for large-scale production of Optimus, its humanoid robot. This signals a shift from R&D to commercialization planning, with implications for capex, manufacturing capacity, and the product roadmap. The baseline filing mentioned AI, robotics, and automation generically but did not disclose production-stage investments in Optimus.
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we currently expect our capital expenditures to exceed $10.00 billion in 2025.
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We currently expect our capital expenditures to be in excess of $25 billion in 2026, driven by our AI initiatives, including investments in compute infrastructure and data centers, the expansion and ramp of our manufacturing and R&D production lines and facilities, and growth in our fleet of company-operated AI-enabled assets and our retail, service and charging footprint.
The company raised its full-year capex guidance from >$10B (2025) to >$25B (2026), a 150% increase. The incremental spend is driven by AI initiatives (compute infrastructure, data centers), company-operated AI-enabled assets (likely Robotaxi fleet), and manufacturing expansion. This represents a material acceleration in capital intensity and a shift toward AI infrastructure investment.
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During the three months ended March 31, 2025, we recognized total revenues of $19.34 billion, representing a decrease of $1.97 billion compared to the same period in the prior year. During the three months ended March 31, 2025, our net income attributable to common stockholders was $409 million, representing a decrease of $981 million compared to the same period in the prior year.
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During the three months ended March 31, 2026, we recognized total revenues of $22.39 billion, representing an increase of $3.05 billion compared to the same period in the prior year. During the three months ended March 31, 2026, our net income attributable to common stockholders was $477 million, representing an increase of $68 million compared to the same period in the prior year.
Q1 2026 revenue increased 16% YoY to $22.4B (vs. a 9% YoY decline in Q1 2025), and net income increased $68M YoY to $477M (vs. a $981M YoY decline in Q1 2025). The company returned to revenue and profit growth after a year-over-year decline in the prior period, driven by higher automotive sales, services revenue, and improved gross margins.
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Automotive sales revenue decreased $3.54 billion, or 21%, in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, due to a decrease of approximately 51,000 combined Model 3 and Model Y cash deliveries in part from bringing down all of our vehicle factories simultaneously for the changeover to New Model Y. Additionally, we had a lower average selling price per unit driven by sales mix, higher customer incentives such as attractive financing options, and a negative impact from the strengthening of the United States dollar when compared to foreign currencies year over year, as well as a decrease of 5,000 deliveries of other models.
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Automotive sales revenue increased $2.55 billion, or 20%, in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 due to an increase of approximately 10% in cash deliveries, in part from bringing down all of our vehicle factories simultaneously for the changeover to the New Model Y in the prior period, and a higher average selling price per unit primarily driven by sales mix and a positive impact from the weakening of the United States dollar when compared to foreign currencies year over year.
Automotive sales revenue increased 15.8% YoY in Q1 2026 (vs. a 21% YoY decline in Q1 2025), driven by ~10% higher deliveries and higher ASP from favorable mix and FX. The prior-period decline was attributed to the New Model Y factory changeover; Q1 2026 benefited from the absence of that disruption. This represents a return to volume and pricing growth.
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Gross margin for total automotive decreased from 18.5% to 16.2% in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 primarily due to lower average selling price per unit, partially offset by lower average cost per unit and an increase in regulatory credits revenue, as discussed above.
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Gross margin for total automotive increased from 16.2% to 21.1% in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to the changes in automotive sales revenue and cost of automotive sales revenue and a decrease in regulatory credits revenue, as discussed above.
Total automotive gross margin expanded 490 bps YoY to 21.1% in Q1 2026 (vs. a 230 bps YoY contraction to 16.2% in Q1 2025). The improvement was driven by higher ASP, favorable mix, and one-time warranty and tariff benefits, despite lower regulatory credit revenue. This marks a significant margin recovery after the prior-period compression.
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Services and other revenue increased $350 million, or 15%, in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase was primarily due to increases in paid Supercharging revenue, insurance services revenue, non-warranty maintenance services and collision revenue, used vehicle revenue and part sales revenue.
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Services and other revenue increased $1.11 billion, or 42%, in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to increases in used vehicle sales volume, non-warranty maintenance services and collision revenue, paid Supercharging sessions and automotive insurance business revenue.
Services and other revenue accelerated to 42% YoY growth in Q1 2026 (vs. 15% in Q1 2025), driven by used vehicle sales, maintenance, Supercharging, and insurance. The acceleration suggests growing scale in high-margin service businesses and increased fleet utilization (Supercharging), consistent with the Robotaxi service launch and expanding installed base.
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Energy generation and storage revenue increased $1.10 billion, or 67%, in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase was primarily due to increases in Megapack and Powerwall deployments compared to the prior year, partially offset by a decrease in average selling price of Megapack.
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Energy generation and storage revenue decreased $322 million, or 12%, in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to decreases in Megapack and Powerwall deployments.
Energy storage revenue declined 12% YoY in Q1 2026 (vs. 67% growth in Q1 2025) due to lower Megapack and Powerwall deployments. The company deployed 8.8 GWh in Q1 2026 vs. 10.4 GWh in Q1 2025. This reversal reflects project-timing lumpiness and potential tariff-related headwinds, as flagged in the outlook section.
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Gross margin for energy generation and storage increased from 24.6% to 28.8% in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase was primarily due to a higher proportion of our storage business, which operated at a higher gross margin, within the segment as compared to the prior period.
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Gross margin for energy generation and storage increased from 28.8% to 39.5% in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to the changes in energy generation and storage revenue and cost of energy generation and storage revenue, as discussed above.
Energy storage gross margin expanded 1,070 bps YoY to 39.5% in Q1 2026 (vs. 420 bps expansion to 28.8% in Q1 2025), driven by lower materials costs and one-time tariff benefits. Despite lower deployment volumes, the margin improvement suggests strong cost reduction and favorable product mix, positioning the segment for high profitability as volumes recover.
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Research and development (“R&D”) expenses increased $258 million, or 22%, in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 primarily due to an increase in AI programs and related costs.
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Research and development (“R&D”) expenses increased $537 million, or 38%, in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to increases in costs related to AI and other programs as we continue to expand our product roadmap and technologies and an increase in stock-based compensation of $145 million.
R&D expense increased 38% YoY to $1.95B in Q1 2026 (vs. 22% growth in Q1 2025), driven by AI programs and $145M higher stock-based compensation. R&D as a percentage of revenue increased to 9% (vs. 7% in Q1 2025). The acceleration reflects intensified investment in AI, autonomy, and Optimus, consistent with the strategic shift toward AI-first products.
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Selling, general and administrative (“SG&A”) expenses decreased $123 million, or 9%, in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 driven by a $52 million decrease in employee and labor costs, including professional services, a $30 million decrease in facilities related expenses, a $22 million decrease in stock-based compensation and a $19 million decrease in marketing expenses.
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Selling, general and administrative (“SG&A”) expenses increased $582 million, or 47%, in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, driven by a $294 million increase in stock-based compensation, a $139 million increase in employee and labor costs, including professional services, and an $87 million increase in operating expenses including legal charges.
SG&A expense increased 47% YoY to $1.83B in Q1 2026 (vs. a 9% decline in Q1 2025), driven by $294M higher stock-based compensation, $139M higher labor costs, and $87M higher operating/legal expenses. The reversal from cost discipline to rapid expense growth reflects scaling of the Robotaxi service, AI infrastructure, and potentially the 2025 CEO Performance Award vesting.
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Our effective tax rate increased from 26% to 29% in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to the changes in the mix of our jurisdictional earnings.
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Our effective tax rate increased from 29% to 34% in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to changes in the mix of our jurisdictional earnings and the non-deductibility of stock-based compensation expense related to the 2025 CEO Performance Award.
The effective tax rate increased 500 bps to 34% in Q1 2026 (vs. 300 bps to 29% in Q1 2025), driven by jurisdictional earnings mix and non-deductible stock-based compensation related to the 2025 CEO Performance Award. The higher rate reduces net income and reflects the tax impact of the large equity grant.
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We ended the first quarter of 2025 with $37.00 billion in cash and cash equivalents and investments, representing an increase of $433 million from the end of 2024.
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We ended the first quarter of 2026 with $44.74 billion in cash and cash equivalents and short-term investments, representing an increase of $684 million from the end of 2025.
Cash and investments increased to $44.7B at Q1 2026 (vs. $37.0B at Q1 2025), up $684M QoQ (vs. $433M in the prior year). The higher balance reflects stronger operating cash flow and debt issuance, providing liquidity for the >$25B capex plan and AI infrastructure investments.
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Our cash flows provided by operating activities were $2.16 billion during the three months ended March 31, 2025, compared to $242 million during the same period ended March 31, 2024, representing an increase of $1.91 billion.
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Our cash flows provided by operating activities were $3.94 billion during the three months ended March 31, 2026, compared to $2.16 billion during the same period ended March 31, 2025, representing an increase of $1.78 billion.
Operating cash flow increased 82% YoY to $3.94B in Q1 2026 (vs. $2.16B in Q1 2025), driven by favorable working capital changes and higher net income. The strong cash generation supports the elevated capex plan and demonstrates improving operational efficiency despite higher R&D and SG&A spend.
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Capital expenditures amounted to $1.49 billion during the three months ended March 31, 2025, compared to $2.78 billion during the same period ended March 31, 2024, representing a decrease of $1.29 billion.
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Capital expenditures amounted to $2.49 billion during the three months ended March 31, 2026, compared to $1.49 billion during the same period ended March 31, 2025, representing an increase of $1.00 billion.
Capex increased 67% YoY to $2.49B in Q1 2026 (vs. $1.49B in Q1 2025), driven by AI infrastructure, compute, data centers, and manufacturing expansion. The prior-year comparison showed a $1.29B decline; the reversal reflects the company's shift to capital-intensive AI and Robotaxi investments.
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Additionally, we invested $2.00 billion in SpaceX common stock during the three months ended March 31, 2026. Refer to Note 12, Related Party Transactions, for additional information regarding the equity investment.
The company invested $2.0B in SpaceX common stock in Q1 2026, a new related-party transaction. This represents a material deployment of cash into a non-core, illiquid equity investment in a private company with shared leadership (Elon Musk). The investment reduces liquidity available for core operations and capex, and introduces concentration risk.
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Net cash flows from financing activities changed by $528 million to $332 million net cash outflows during the three months ended March 31, 2025 from $196 million net cash inflows during the three months ended March 31, 2024. The decrease was primarily due to a $710 million increase in repayments of debt and a $151 million decrease in proceeds from issuances of debt.
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Net cash flows from financing activities changed by $1.50 billion to $1.17 billion net cash inflows during the three months ended March 31, 2026 from $332 million net cash outflows during the three months ended March 31, 2025. The change was primarily due to a $3.71 billion increase in proceeds from issuances of debt, partially offset by a $2.23 billion increase in repayments of debt.
Financing cash flow swung to $1.17B inflow in Q1 2026 (vs. $332M outflow in Q1 2025), driven by $3.71B higher debt proceeds partially offset by $2.23B higher debt repayments. The net debt issuance suggests the company is raising external capital to fund the elevated capex plan and SpaceX investment, despite strong operating cash flow.
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As of March 31, 2025, we and our subsidiaries had outstanding $7.27 billion in aggregate principal amount of indebtedness, of which $2.17 billion is current.
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As of March 31, 2026, we and our subsidiaries had outstanding $9.04 billion in aggregate principal amount of indebtedness, of which $1.38 billion is current.
Total debt increased to $9.04B at Q1 2026 (vs. $7.27B at Q1 2025), up $1.77B, while current debt decreased to $1.38B (vs. $2.17B). The net debt increase reflects the financing activity described above, with the company raising long-term debt to fund AI capex and the SpaceX investment.
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In tandem with the launch of our Robotaxi business, we are focused on developing and optimizing dedicated infrastructure, including in relation to vehicle cleaning and maintenance, charging, security, teleoperations and fleet management, to ensure service quality as we continue to scale.
The company disclosed it is building dedicated Robotaxi infrastructure for cleaning, maintenance, charging, security, teleoperations, and fleet management. This represents a new operational and capital requirement beyond traditional automotive manufacturing, with implications for capex, opex, and the scalability of the service-driven business model.
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To support our businesses in clean energy and transport and autonomous robots, we are investing in and developing the necessary infrastructure. We continue to expand Cortex, our onsite training clusters at Gigafactory Texas, to provide sufficient compute resources for the development of our AI products and services, and are expanding our scope of manufacturing to include semiconductor fabrication.
The company is expanding its manufacturing scope to include semiconductor fabrication, a new vertical integration initiative. This represents a material strategic shift into chip manufacturing, with implications for capex, technical risk, and supply chain control. The baseline filing mentioned AI compute investments but did not disclose semiconductor fabrication plans.
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Furthermore, certain provisions of the OBBBA, including the removal of tax credits for electric vehicles, may also impact consumer demand for electric vehicles in general.
The company disclosed that the OBBBA (a legislative or regulatory development) includes provisions removing tax credits for electric vehicles, which may impact consumer demand. This is a new regulatory headwind not mentioned in the baseline filing, with potential implications for pricing, demand, and competitive positioning in the U.S. market.
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For instance, the recently announced import tariffs by the US government could significantly increase battery cell expenses, negatively impacting consumer demand.
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For instance, import tariffs by the US government and the provisions of the OBBBA could significantly increase battery cell expenses and impact costs for our consumers, negatively impacting consumer demand.
The company added a reference to the OBBBA as a driver of higher battery cell expenses for energy storage products, in addition to import tariffs. This suggests the OBBBA has provisions affecting battery supply chains or costs, compounding the tariff headwinds flagged in the baseline filing.
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Automotive regulatory credits revenue increased $153 million, or 35%, in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. This increase was driven by demand for credits in North America as other automobile manufacturers have scaled back on their battery electric vehicle plans.
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Automotive regulatory credits revenue decreased $215 million, or 36%, in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. Fluctuations in automotive regulatory credits are impacted by our supply of credits, subject to changes in regulation, production and sales. Recent governmental and regulatory actions have restricted certain regulatory credit programs tied to our products. Furthermore, we are impacted by the demand for credits by other automobile manufacturers.
Regulatory credit revenue declined 36% YoY in Q1 2026 (vs. 35% growth in Q1 2025), and the company disclosed that "recent governmental and regulatory actions have restricted certain regulatory credit programs tied to our products." This is a new regulatory headwind that reduces a high-margin revenue stream, with implications for automotive gross margin and profitability.
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Other (expense) income, net, changed unfavorably by $562 million in the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The unfavorable change was primarily due a $125 million mark-to-market loss in the current period compared to a $335 million mark-to-market gain on our bitcoin digital assets in the prior period. Additionally, there were unfavorable fluctuations in foreign currency exchange rates on our intercompany balances.
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Other expense, net, changed unfavorably by $416 million in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to fluctuations in foreign currency exchange rates on our intercompany balances and mark-to-market adjustments on our bitcoin digital assets.
Other expense, net was $535M in Q1 2026 (vs. $119M in Q1 2025), driven by FX losses on intercompany balances and bitcoin mark-to-market adjustments. The $416M unfavorable swing reflects continued volatility in non-operating items, though the magnitude is smaller than the $562M swing in the prior-year comparison.
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The following is a summary of the status of production of each of our announced vehicle models in production and under development, as of the date of this Quarterly Report on Form 10-Q: Production Location Vehicle Model(s) Production Status Fremont Factory Model S / Model X Active Model 3 / Model Y Active Gigafactory Shanghai Model 3 / Model Y Active Gigafactory Berlin-Brandenburg Model Y Active Gigafactory Texas Model Y Active | Cybertruck Active | Cybercab Construction Gigafactory Nevada Tesla Semi Construction TBD Roadster In development
The company removed the production status table that listed vehicle models by factory and development stage. This table provided transparency on product pipeline and manufacturing footprint; its removal reduces disclosure granularity. The current filing still discusses Cybercab pilot production and Tesla Semi in prose, but the structured table is absent.
Notes
Added $2B SpaceX equity investment, new 2025 CEO Performance Award with $10-120B unrecognized expense, tariff refund contingency, and $2B AI acquisition.
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As previously disclosed and upon receiving the applicable regulatory approvals, the Company invested $2.00 billion in SpaceX common stock (formerly a preferred share investment in xAI) representing an ownership interest of less than 1% in March 2026. We have determined that under the applicable accounting standards, we are presumed to have significant influence over SpaceX and as such, we account for this investment using the equity method of accounting.
Tesla invested $2.00 billion in SpaceX common stock in March 2026, representing less than 1% ownership. The investment is accounted for using the equity method with fair value option elected. This is a new related-party transaction with a company where Tesla's CEO also serves as CEO.
Added in current filing · verify on EDGAR →
On September 3, 2025 (the “2025 CEO Performance Award Grant Date”), the Board of Directors granted the 2025 CEO Performance Award to our CEO, consisting of approximately 423.7 million shares of performance-based restricted stock to our CEO, which was approved on November 6, 2025 by our shareholders (the “2025 CEO Performance Award Accounting Grant Date”).
Tesla granted a new CEO performance award consisting of 423.7 million shares with 12 tranches tied to market capitalization milestones ($2.0 trillion to $8.5 trillion) and operational milestones (vehicle deliveries, FSD subscriptions, bots, Robotaxis, Adjusted EBITDA targets). As of March 31, 2026, unrecognized stock-based compensation expense is $9.97 billion for the one probable milestone, and $105.82 billion to $120.37 billion for milestones not yet probable. Q1 2026 expense was $260 million.
Added in current filing · verify on EDGAR →
In February 2026, the U.S. Supreme Court issued a ruling invalidating certain tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA). As a result of this ruling, we may be eligible for a refund of tariffs previously paid on imported goods. As the recoverability and timing of any such refund remains uncertain, we have not recognized a receivable and corresponding offset to expense or asset as of March 31, 2026 and will not until such amounts are realized or realizable. We continue to monitor these developments and their potential impact on our results of operations, including reduction of revenue for any potential refunds to certain energy storage customers for which a contractual obligation exists.
A February 2026 U.S. Supreme Court ruling invalidated certain IEEPA tariffs, potentially entitling Tesla to refunds on previously paid tariffs. Tesla has not recognized any receivable due to uncertainty, and notes potential revenue reductions if refunds are owed to energy storage customers under contractual obligations.
Added in current filing · verify on EDGAR →
In April 2026, the Company entered into an agreement to acquire an AI hardware company for up to $2.00 billion in Tesla common stock and equity awards, of which approximately $1.8 billion is subject to certain service conditions and/or performance milestones dependent on the successful deployment of the company's technology.
Tesla agreed to acquire an AI hardware company for up to $2.00 billion in stock and equity awards, with $1.8 billion contingent on service conditions and performance milestones tied to technology deployment. This is a subsequent event disclosed in Note 14.
Previous filing · verify on EDGAR →
On January 8, 2025, the Court approved the settlement and awarded Plaintiff’s counsel fees in the amount of approximately $176 million. A final judgment was entered by the Court on January 13, 2025. The Company disagrees with the amount of attorneys’ fees awarded by the court. On February 10, 2025, Tesla appealed the attorneys’ fee award amount to the Delaware Supreme Court.
Current filing · verify on EDGAR →
On January 30, 2026, the Delaware Supreme Court affirmed the Court of Chancery’s approval of the settlement agreement, resolving the derivative claims related to board compensation. The Court then significantly reduced the attorney fee award from $176 million to $71 million.
The Delaware Supreme Court affirmed the settlement on January 30, 2026, and reduced the attorney fee award from $176 million to $71 million. The baseline period showed the initial $176 million award and Tesla's appeal; the current period reflects the final resolution with the reduced fee.
Removed from previous filing · verify on EDGAR →
On June 4, 2018, a purported Tesla stockholder filed a putative class and derivative action in the Delaware Court of Chancery against Elon Musk and the members of Tesla’s board of directors as then constituted, alleging corporate waste, unjust enrichment and that such board members breached their fiduciary duties by approving the stock-based compensation plan awarded to Elon Musk in 2018 (the “2018 CEO Performance Award”). Trial was held November 14-18, 2022. On January 30, 2024, the Court issued an opinion finding that the 2018 CEO Performance Award should be rescinded. Plaintiff’s counsel filed a brief seeking a fee award of 29,402,900 Tesla shares, plus expenses of $1,120,115.50. Tesla opposed the fee request, and at Tesla’s 2024 Annual Meeting of Stockholders, 72% of the disinterested voting shares of Tesla, excluding shares owned by Mr. Musk and Kimbal Musk, voted to ratify the 2018 CEO Performance Award. Because Tesla’s disinterested stockholders voted to ratify the 2018 CEO Performance Award, Mr. Musk and the other director defendants, joined by Tesla, filed a brief seeking to revise the Court’s January 30, 2024 opinion. On December 2, 2024, the Court issued an opinion denying the motion to revise the Court’s January 30, 2024 opinion and awarded Plaintiff’s counsel fees in the amount of $345 million. A final judgment was entered by the Court, and the director defendants and Tesla appealed the decisions to the Delaware Supreme Court. Tesla and the Director Defendants filed their response briefs on March 11, 2025. Plaintiff’s opening brief is due on April 25, 2025, and reply briefs are due on May 16, 2025. If the appeal to the Delaware Supreme Court were unsuccessful, it could result in a material adverse impact on our business and reported earnings due to the uncertainty and potentially significant costs associated with replacing or revising Mr. Musk’s compensation package, the types of which were described in our 2024 proxy statement.
The current filing does not mention this litigation, suggesting it may have been resolved or is no longer considered material to disclose in the quarterly notes. The absence of this disclosure is notable given the baseline period's warning of potential material adverse impact.
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On August 6, 2024, the plaintiffs in these three actions moved to consolidate the matters into a single case. The Court consolidated two of the three cases. Tesla and the directors filed motions to dismiss on April 4, 2025.
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On August 6, 2024, the plaintiffs in these three actions moved to consolidate the matters into a single case. The Court consolidated two of the three cases. Tesla and the directors filed motions to dismiss, and oral argument on those motions occurred on October 22, 2025. On April 2, 2026, these cases were reassigned to a different judge. On April 13, 2026, the Court granted Tesla’s motions to dismiss and dismissed the cases.
The derivative lawsuits involving Elon Musk, X Corp., and xAI were dismissed on April 13, 2026, after oral argument in October 2025 and reassignment to a different judge in April 2026. The baseline period showed motions to dismiss filed in April 2025 with no resolution yet.
Added in current filing · verify on EDGAR →
On May 6, 2025, the plaintiff filed a motion for class certification, which Tesla opposed, and on August 18, 2025, the Court certified a limited class comprised of California consumers who are not subject to an arbitration agreement. On September 1, 2025, Tesla filed a petition in the United States Court of Appeals for the Ninth Circuit for permission to appeal the class certification order, and on December 18, 2025, the Ninth Circuit granted Tesla’s petition. On January 5, 2026, the district court stayed the case pending resolution of the proceedings before the Ninth Circuit. Tesla filed its opening brief in the Ninth Circuit on March 12, 2026, and the plaintiff filed a response brief on April 13, 2026.
The FSD-related class action in the Northern District of California progressed significantly: the court certified a limited class of California consumers in August 2025, Tesla appealed to the Ninth Circuit (petition granted December 2025), and the district court stayed the case in January 2026. Briefing is underway in the Ninth Circuit as of April 2026.
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On August 4, 2025, a proposed class action was filed in the U.S. District Court Western District of Texas against Tesla, Inc., Elon Musk, and certain current and former Company executives. The complaint alleges that the defendants violated federal securities laws through alleged material misrepresentations in public filings regarding the effectiveness of Autopilot, Full-Self Driving (Supervised), and Robotaxi. The complaint seeks monetary damages and other relief on behalf of persons who purchased Tesla stock between April 19, 2023, and June 22, 2025. The plaintiffs filed an amended complaint on February 17, 2026, and Tesla moved to dismiss the amended complaint on April 20, 2026.
A new securities class action was filed in August 2025 alleging material misrepresentations about Autopilot, FSD, and Robotaxi effectiveness. The case covers stock purchases from April 2023 to June 2025. An amended complaint was filed in February 2026, and Tesla moved to dismiss in April 2026.
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On August 1, 2025, a jury in the U.S. District Court for the Southern District of Florida reached a verdict in a product liability trial relating to certain allegations regarding the use of our Autopilot technology in a 2019 accident that resulted in a fatality and injuries. The jury awarded $129 million in total compensatory damages, finding the driver 67% at fault and the Company 33% at fault. The jury also awarded $200 million in punitive damages. On September 15, 2025, the Company filed a post-trial motion for judgment as a matter of law or, in the alternative, a new trial on all issues or an amended judgment to lesser compensatory and punitive damages. On February 19, 2026, the Court denied the Company’s post-trial motions, and on March 16, 2026, the Company filed a notice of appeal with the U.S. Court of Appeals for the Eleventh Circuit. Although we believe that the facts and law do not justify the damages awarded, the Company has recorded an immaterial accrual.
A jury awarded $129 million in compensatory damages (33% Tesla fault) and $200 million in punitive damages in a product liability case involving Autopilot and a 2019 fatal accident. The court denied Tesla's post-trial motions in February 2026, and Tesla appealed to the Eleventh Circuit in March 2026. Tesla recorded an immaterial accrual.
Added in current filing · verify on EDGAR → · paraphrased
On November 13, 2017, a putative class action was filed against Tesla in Alameda County Superior Court, alleging race discrimination, including allegations that Tesla created a hostile work environment by failing to take necessary steps to prevent race-based harassment and by failing to take corrective action once the alleged harassment occurred. On May 17, 2024, the court certified the case as a class action on limited issues, but on November 17, 2025, the court decertified the class. Trials of the three remaining named plaintiffs are scheduled to begin on May 11, 2026, and will proceed one after the other.
The 2017 race discrimination class action was decertified in November 2025, and trials for the three remaining named plaintiffs are scheduled to begin May 11, 2026. The baseline filing did not mention this case in the discrimination section, suggesting it was either not disclosed or was disclosed elsewhere.
Previous filing · verify on EDGAR →
Our maximum exposure on the guarantees we provide if they are unable to sell the vehicle at or above the vehicle’s contractual residual value at the end of the lease term was $1.90 billion and $1.45 billion as of March 31, 2025 and December 31, 2024, respectively.
Current filing · verify on EDGAR →
Our maximum exposure on the guarantees we provide if they are unable to sell the vehicle at or above the vehicle’s contractual residual value at the end of the lease term was $3.67 billion and $3.45 billion as of March 31, 2026 and December 31, 2025, respectively.
Maximum exposure on resale value guarantees increased from $1.90 billion (March 2025) to $3.67 billion (March 2026), a 93% increase year-over-year. This reflects growth in the leasing programs where Tesla provides residual value guarantees to commercial banking partners.
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As of March 31, 2025, total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an original expected length of more than one year was $4.58 billion. Of this amount, we expect to recognize $1.46 billion in the next 12 months and the rest over the remaining performance obligation period. Additionally, changes in regulations on automotive regulatory credits may significantly impact our remaining performance obligations and revenue to be recognized under these contracts.
Current filing · verify on EDGAR →
As of March 31, 2026, total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an original expected length of more than one year was $303 million. Of this amount, we expect to recognize $198 million in the next 12 months and the rest over the remaining performance obligation period. Changes in regulations on automotive regulatory credits may significantly impact our remaining performance obligations and revenue to be recognized under these contracts. Recent governmental and regulatory actions have restricted certain regulatory credit programs tied to our products.
Unsatisfied performance obligations for automotive regulatory credits dropped from $4.58 billion (March 2025) to $303 million (March 2026), a 93% decline. Tesla added disclosure that "Recent governmental and regulatory actions have restricted certain regulatory credit programs tied to our products," explaining the sharp reduction in future regulatory credit revenue.
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As of March 31, 2025, total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an original expected length of more than one year was $9.95 billion. Of this amount, we expect to recognize $4.71 billion in the next 12 months and the rest over the remaining performance obligation period.
Current filing · verify on EDGAR →
As of March 31, 2026, total transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied for contracts with an original expected length of more than one year was $10.15 billion. Of this amount, we expect to recognize $5.02 billion in the next 12 months and the rest over the remaining performance obligation period.
Energy storage unsatisfied performance obligations increased from $9.95 billion (March 2025) to $10.15 billion (March 2026), a 2% increase. The amount expected to be recognized in the next 12 months increased from $4.71 billion to $5.02 billion, indicating accelerating near-term revenue recognition from the backlog.
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Our effective tax rate was 29% for the three months ended March 31, 2025, compared to 26% for the three months ended March 31, 2024. The change in our effective tax rate was primarily due to the changes in the mix of our jurisdictional earnings.
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Our effective tax rate was 34% for the three months ended March 31, 2026 compared to 29% for the three months ended March 31, 2025. The change in our effective tax rate was primarily due to changes in the mix of our jurisdictional earnings and the non-deductibility of stock-based compensation expense related to the 2025 CEO Performance Award.
The effective tax rate increased from 29% (Q1 2025) to 34% (Q1 2026), driven by jurisdictional earnings mix and the non-deductibility of stock-based compensation expense related to the 2025 CEO Performance Award. This 5-percentage-point increase reflects the tax impact of the new CEO award.
Previous filing · view on EDGAR → · paraphrased
Transactions with related parties were immaterial for the three months ended March 31, 2025.
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Tesla periodically does business with certain entities with which its CEO and directors are affiliated, such as SpaceX, The Boring Company and Redwood Materials, in accordance with our Related Person Transactions Policy. In the three months ended March 31, 2026, we recognized $87 million of revenues and $65 million of cost of revenues from SpaceX for its purchase of our Megapack products in the ordinary course of business. Other transactions with SpaceX and other related parties in the three months ended March 31, 2026 were immaterial.
Tesla disclosed $87 million of revenues and $65 million of cost of revenues from SpaceX for Megapack purchases in Q1 2026. The baseline period stated all related-party transactions were immaterial. This reflects both the new SpaceX equity investment and expanded commercial transactions.
Show 3 minor / wording changes
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On October 21, 2022, a lawsuit was filed in the Delaware Court of Chancery by a purported shareholder of Tesla alleging, among other things, that board members breached their fiduciary duties in connection with their oversight of the Company’s 2018 settlement with the SEC, as amended. Among other things, the plaintiff seeks reforms to the Company’s corporate governance and internal procedures, unspecified damages, and attorneys’ fees. The lawsuit has been stayed.
Current filing · verify on EDGAR →
On October 21, 2022, a lawsuit was filed in the Delaware Court of Chancery by a purported shareholder of Tesla alleging, among other things, that board members breached their fiduciary duties in connection with their oversight of the Company’s 2018 settlement with the SEC, as amended. Among other things, the plaintiff sought reforms to the Company’s corporate governance and internal procedures, unspecified damages, and attorneys’ fees. On March 30, 2026, the plaintiff voluntarily dismissed the case.
The lawsuit alleging breach of fiduciary duties related to the 2018 SEC settlement was voluntarily dismissed by the plaintiff on March 30, 2026. The baseline period showed the case was stayed; the current period reflects its dismissal.
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Solar energy systems, net 4,855 4,924
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Energy generation and storage systems, net 4,565 4,604
Tesla renamed the balance sheet line item from "Solar energy systems, net" to "Energy generation and storage systems, net," reflecting a broader scope that includes both solar and storage assets. The dollar amounts are not directly comparable due to the reclassification.
Removed from previous filing · view on EDGAR →
Intangible assets, net 144 150 Goodwill 248 244
The baseline balance sheet included separate line items for "Intangible assets, net" ($144M) and "Goodwill" ($248M). These line items do not appear in the current balance sheet, suggesting they were either reclassified into other line items or became immaterial and were combined elsewhere.
Risk Factors
Tesla removed two material risk factors: tariff/trade policy uncertainty and public credibility/confidence challenges.
Show 2 minor / wording changes
Removed from previous filing · verify on EDGAR →
We face risks associated with maintaining and expanding our international operations, including unfavorable and uncertain regulatory, political, economic, tax, tariff, export controls and labor conditions. We are subject to legal and regulatory requirements, political uncertainty and social, environmental and economic conditions in numerous jurisdictions, including markets in which we generate significant sales. We have little control over these matters which are inherently unpredictable. Our operations in such jurisdictions, particularly as a company based in the U.S., with additional manufacturing operations in China and Europe, create risks relating to conforming our products to regulatory and safety requirements and charging and other electric infrastructures; organizing local operating entities; establishing, staffing and managing foreign business locations; attracting local customers; navigating U.S. and foreign government taxes, regulations and permit requirements; enforceability of our contractual rights; trade restrictions, customs regulations, tariffs and price or exchange controls; and preferences in foreign nations for domestically manufactured products. For example, we monitor tax legislation changes on a global basis, including changes arising as a result of the Organization for Economic Cooperation and Development’s multi-jurisdictional plan of action to address base erosion and profit shifting. Further, the United States has recently announced changes to U.S. trade policy, including increasing tariffs on imports, in many cases significantly, and potentially renegotiating or terminating existing trade agreements. The exact scope of any such tariffs that will ultimately be implemented is not known at this time, and the impacts on our business and costs of our products is uncertain. Retaliatory tariffs imposed by other countries on U.S. exports, further increases in U.S. tariffs, and the uncertainties surrounding domestic and foreign tariffs could also adversely impact demand for our products. We cannot predict whether, and to what extent, there may be changes to international trade agreements, such as those with China, or whether, or to what extent, quotas, duties, additional tariffs, export controls or other restrictions will be changed or imposed by the United States or by other countries. Historically, past U.S. special tariff actions have increased our costs for vehicles manufactured in the United States and increased costs for those same vehicles when exported from the United States. Further, as it pertains to electric vehicles and lithium-ion batteries for our energy storage products, while the Company has continuously aimed for a strong domestic supply chain, certain parts and components are difficult or impossible to source within the United States. A change on any of these conditions may increase our costs, impact our ability to sell our products and require significant management attention, and may harm our business, prospects, financial condition and operating results if we are unable to manage them effectively.
The prior quarter's 10-Q included a detailed risk factor addressing tariff uncertainty, U.S. trade policy changes, retaliatory tariffs, and supply-chain sourcing challenges. This quarter's Item 1A contains only the standard reference to the 10-K risk factors, with no material-changes disclosure. Per 10-Q Item 1A framing, non-repetition is presentational — the 10-K version still stands — not a rescission.
Removed from previous filing · verify on EDGAR →
We will need to maintain public credibility and confidence in our long-term business prospects in order to succeed. In order to maintain and grow our business, we must maintain credibility and confidence among customers, suppliers, analysts, investors, ratings agencies and other parties in our long-term financial viability and business prospects. Maintaining such confidence may be challenging due to our limited operating history relative to established competitors; customer unfamiliarity with our products; any delays we may experience in scaling manufacturing, delivery and service operations to meet demand; competition and uncertainty regarding the future of electric vehicles or our other products and services; our quarterly production and sales performance compared with market expectations; and other factors including those over which we have no control. In particular, Tesla’s products, business, results of operations, and statements and actions of Tesla and its management are subject to significant amounts of commentary by a range of third parties. Such attention can include criticism, which may be exaggerated or unfounded, such as speculation regarding the sufficiency or stability of our management team, and has incited protests, some escalating to violence targeting our operations, products and personnel. Any such negative perceptions, whether caused by us or not, may harm our brand and our business (including sales) and make it more difficult to raise additional funds if needed.
The prior quarter's 10-Q included a risk factor addressing the need to maintain public credibility and confidence, citing third-party commentary, criticism, protests, and potential harm to brand and fundraising. This quarter's Item 1A contains only the standard reference to the 10-K risk factors, with no material-changes disclosure. Per 10-Q Item 1A framing, non-repetition is presentational — the 10-K version still stands — not a rescission.
Financial Statements
Primary statements as printed on the EDGAR filing (iXBRL face). Companyfacts is used only when a statement is not on the HTML face. Not generated by the model.
Consolidated Statements of Operations (Unaudited)
(in millions, except per share data)
| Description | Three months ended March 31, 2026 | Three months ended March 31, 2025 |
|---|---|---|
| Revenues | ||
| Automotive sales | 15,473 | 12,925 |
| Automotive regulatory credits | 380 | 595 |
| Automotive leasing | 381 | 447 |
| Total automotive revenues | 16,234 | 13,967 |
| Energy generation and storage | 2,408 | 2,730 |
| Services and other | 3,745 | 2,638 |
| Total revenues | 22,387 | 19,335 |
| Cost of revenues | ||
| Automotive sales | 12,616 | 11,461 |
| Automotive leasing | 196 | 239 |
| Total automotive cost of revenues | 12,812 | 11,700 |
| Energy generation and storage | 1,456 | 1,945 |
| Services and other | 3,399 | 2,537 |
| Total cost of revenues | 17,667 | 16,182 |
| Gross profit | 4,720 | 3,153 |
| Operating expenses | ||
| Research and development | 1,946 | 1,409 |
| Selling, general and administrative | 1,833 | 1,251 |
| Restructuring and other | — | 94 |
| Total operating expenses | 3,779 | 2,754 |
| Income from operations | 941 | 399 |
| Interest income | 434 | 400 |
| Interest expense | (92) | (91) |
| Other expense, net | (535) | (119) |
| Income before income taxes | 748 | 589 |
| Provision for income taxes | 257 | 169 |
| Net income | 491 | 420 |
| Net income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | 14 | 11 |
| Net income attributable to common stockholders | 477 | 409 |
| Net income per share of common stock attributable to common stockholders | ||
| Basic | 0.15 | 0.13 |
| Diluted | 0.13 | 0.12 |
| Weighted average shares used in computing net income per share of common stock | ||
| Basic | 3,234 | 3,218 |
| Diluted | 3,538 | 3,521 |
Consolidated Balance Sheets (Unaudited)
(in millions, except per share data)
| Description | March 31, 2026 | December 31, 2025 |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 16,603 | 16,513 |
| Short-term investments | 28,140 | 27,546 |
| Accounts receivable, net | 3,959 | 4,576 |
| Inventory | 14,434 | 12,392 |
| Prepaid expenses and other current assets | 6,612 | 7,615 |
| Total current assets | 69,748 | 68,642 |
| Operating lease vehicles, net | 4,530 | 4,912 |
| Energy generation and storage systems, net | 4,565 | 4,604 |
| Property, plant and equipment, net | 43,213 | 40,643 |
| Operating lease right-of-use assets | 6,332 | 6,027 |
| Digital assets | 786 | 1,008 |
| Deferred tax assets | 7,060 | 6,925 |
| Other non-current assets | 7,490 | 5,045 |
| Total assets | 143,724 | 137,806 |
| Liabilities | ||
| Current liabilities | ||
| Accounts payable | 14,696 | 13,371 |
| Accrued liabilities and other | 14,554 | 13,279 |
| Deferred revenue | 3,441 | 3,424 |
| Current portion of debt and finance leases | 1,447 | 1,640 |
| Total current liabilities | 34,138 | 31,714 |
| Debt and finance leases, net of current portion | 7,782 | 6,736 |
| Deferred revenue, net of current portion | 3,847 | 3,631 |
| Other long-term liabilities | 13,155 | 12,860 |
| Total liabilities | 58,922 | 54,941 |
| Commitments and contingencies (Note 10) | ||
| Redeemable noncontrolling interests in subsidiaries | 57 | 58 |
| Equity | ||
| Stockholders’ equity | ||
| Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding | — | — |
| Common stock; $0.001 par value; 6,000 shares authorized; 3,755 and 3,751 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively | 3 | 3 |
| Additional paid-in capital | 44,299 | 42,770 |
| Accumulated other comprehensive income | 334 | 361 |
| Retained earnings | 39,480 | 39,003 |
| Total stockholders’ equity | 84,116 | 82,137 |
| Noncontrolling interests in subsidiaries | 629 | 670 |
| Total liabilities and equity | 143,724 | 137,806 |
Consolidated Statements of Cash Flows (Unaudited)
(in millions)
| Description | Three months ended March 31, 2026 | Three months ended March 31, 2025 |
|---|---|---|
| Cash Flows from Operating Activities | ||
| Net income | 491 | 420 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation, amortization and impairment | 1,590 | 1,447 |
| Stock-based compensation | 1,030 | 573 |
| Inventory write-downs | 77 | 112 |
| Foreign currency transaction net unrealized loss | 287 | 30 |
| Deferred income taxes | (136) | (43) |
| Digital assets loss, net | 222 | 125 |
| Non-cash interest and other operating activities | 1 | 46 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | 561 | 630 |
| Inventory | (2,255) | (1,704) |
| Operating lease vehicles | 174 | (76) |
| Prepaid expenses and other assets | 231 | (419) |
| Accounts payable, accrued and other liabilities | 1,401 | 706 |
| Deferred revenue | 263 | 309 |
| Net cash provided by operating activities | 3,937 | 2,156 |
| Cash Flows from Investing Activities | ||
| Purchases of property and equipment excluding finance leases, net of sales | (2,493) | (1,492) |
| Purchase of SpaceX equity investment | (2,002) | — |
| Purchases of short-term investments | (8,318) | (6,015) |
| Proceeds from maturities of short-term investments | 7,790 | 5,856 |
| Net cash used in investing activities | (5,023) | (1,651) |
| Cash Flows from Financing Activities | ||
| Proceeds from issuances of debt | 4,331 | 625 |
| Repayments of debt | (3,530) | (1,301) |
| Proceeds from exercises of stock options and other stock issuances | 361 | 313 |
| Principal payments on finance leases | (18) | (48) |
| Proceeds received from directors in shareholder settlement | — | 277 |
| Recovery (payment) of legal fees associated with shareholder settlement | 98 | (176) |
| Distributions paid to noncontrolling interests in subsidiaries | (70) | (22) |
| Net cash provided by (used in) financing activities | 1,172 | (332) |
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (47) | 40 |
| Net increase in cash and cash equivalents and restricted cash | 39 | 213 |
| Cash and cash equivalents and restricted cash, beginning of period | 17,616 | 17,037 |
| Cash and cash equivalents and restricted cash, end of period | 17,655 | 17,250 |
| Supplemental Non-Cash Investing and Financing Activities | ||
| Acquisitions of property and equipment included in liabilities | 2,814 | 1,581 |
| Leased assets obtained in exchange for finance lease liabilities | 6 | — |
| Leased assets obtained in exchange for operating lease liabilities | 565 | 342 |
Amounts as printed on the EDGAR/iXBRL face — (in millions, except per share data); (in millions). Labels, columns, and figures are the filing face, not a GAAP stencil. Interactive statements & notes on EDGAR ↗
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