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NASDAQ: TSLA Tesla, Inc. 10-Q

Tesla's revenue rose 15.8% to $22.39B in the first quarter, and gross margin expanded to 21.1% from 16.3% a year earlier.

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 →

6 key changes 2 high relevance 4 sections

Key Changes

  • medium

    Net income attributable to common stockholders increased 16.6% to $477.0M, or $0.13 per diluted share, from $409.0M, or $0.12 per diluted share, a year earlier.

    view on EDGAR →
  • high

    Operating cash flow rose 82.6% to $3.94B, while capital expenditures increased to $2.49B from $1.49B.

    view on EDGAR →
  • medium

    Automotive segment revenue grew 20.3% to $19.98B, driven by an increase of approximately 10% in cash deliveries and higher average selling prices.

    view on EDGAR →
  • medium

    Energy generation and storage segment revenue fell 11.8% to $2.41B, primarily due to decreases in Megapack and Powerwall deployments.

    view on EDGAR →
  • high

    The company invested $2.00B in SpaceX common stock during the quarter and now expects 2026 capital expenditures to exceed $25 billion.

    view on EDGAR →
  • medium

    In the quarter, pre-tax income rose 27.0% to $748.0M while net income rose 16.6% to $477.0M; income taxes were 34.4% of pre-tax income, against 28.7% a year earlier.

    view on EDGAR →

Summary

Total revenue increased 15.8% to $22.39B in the first quarter of 2026, with automotive revenue up 20.3% to $19.98B. The company attributes the automotive sales increase 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. Energy generation and storage segment revenue declined 11.8% to $2.41B, primarily due to decreases in Megapack and Powerwall deployments.

Gross profit rose 49.7% to $4.72B, and total gross margin expanded to 21.1% from 16.3%. Operating expenses increased 37.2% to $3.78B, with research and development up 38.1% to $1.95B and selling, general and administrative up 46.5% to $1.83B. Income from operations more than doubled to $941.0M from $399.0M. Net income attributable to common stockholders was $477.0M, up from $409.0M a year earlier.

Cash provided by operating activities was $3.94B, up from $2.16B. Investing activities used $5.02B of cash, including $2.49B of capital expenditures and a $2.00B purchase of SpaceX equity. Financing activities provided $1.17B, with $4.33B of debt issuances and $3.53B of repayments. The company ended the quarter with $16.60B of cash and cash equivalents and $28.14B of short-term investments.

Section-by-Section Diff

MD&A

~6,300 words (+3% vs prior)

Tesla's MD&A now emphasizes AI and robotics, reports a SpaceX equity investment, and raises 2026 capex guidance.

3 Added 5 Modified
Substantive Edit Company focus and mission high

Previous filing · verify on EDGAR →

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.

Current filing · verify on EDGAR →

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).

The company's stated focus has shifted from sustainable energy to artificial intelligence and robotics, with explicit mention of FSD, Robotaxi, and Optimus.

Added SpaceX equity investment high

Added in current filing · verify on EDGAR →

Additionally, we invested $2.00 billion in SpaceX common stock during the three months ended March 31, 2026.

Tesla made a new equity investment in SpaceX during the quarter, a significant related-party transaction.

Substantive Edit Capital expenditure guidance high

Previous 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.

Capital expenditure guidance for 2026 has been raised to over $25 billion, more than double the prior year's expectation, reflecting heavy investment in AI infrastructure.

Added Robotaxi service expansion medium

Added in current filing · verify on EDGAR →

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 now discusses the expansion of its Robotaxi service, which was launched in June 2025, as a key part of its business model.

Added Optimus humanoid robot development medium

Added in current filing · verify on EDGAR →

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.

Tesla has added discussion of Optimus, its humanoid robot, including preparations for large-scale production.

Substantive Edit Energy storage product introductions medium

Previous filing · verify on EDGAR →

including the introduction of Powerwall 3 in 2024, and the ramps of our Megafactories in Shanghai and Lathrop, California.

Current filing · verify on EDGAR →

In 2025, we introduced Megapack 3 and Megablock, our next-generation industrial storage product, and began manufacturing a new residential retrofit solar panel.

The company now highlights the introduction of Megapack 3 and Megablock, and a new residential retrofit solar panel, indicating product line evolution.

Substantive Edit Tariff impact on energy business medium

Previous filing · verify on EDGAR →

the recently announced import tariffs by the US government could significantly increase battery cell expenses, negatively impacting consumer demand.

Current filing · verify on EDGAR →

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 discussion of tariff impact now includes the OBBBA as an additional factor that could increase battery cell expenses and impact consumer demand.

Substantive Edit Effective tax rate drivers medium

Previous 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.

The explanation for the effective tax rate increase now includes the non-deductibility of stock-based compensation expense related to the 2025 CEO Performance Award, a new factor.

Risk Factors

~65 words (-94% vs prior)

Tesla removed the risk factor about maintaining public credibility and confidence, and the remaining risk factor on international operations was already present in the prior year's 10-K.

1 Removed 1 Modified
Removed Public credibility and confidence risk factor medium

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.

The risk factor discussing the need to maintain public credibility and confidence, including risks from negative commentary and protests, was removed from the current filing.

Show 1 minor / wording change
Substantive Edit International operations risk factor low

Previous filing · verify on EDGAR →

Other than the risk factors set forth below, there have been no material changes from the risk factors discussed in our Annual Report.

Current filing · verify on EDGAR →

Our operations and financial results are subject to various risks and uncertainties, including the factors discussed in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025, which could adversely affect our business, financial conditions and future results.

The current filing no longer states that there have been no material changes from the risk factors in the Annual Report, and it does not include the detailed international operations risk factor that was present in the baseline. The reference to the Annual Report has been updated to the 2025 10-K.

Notes

~14,800 words (+23% vs prior)

Tesla added a SpaceX equity investment and disclosed a new AI hardware acquisition agreement, while the directors' compensation litigation fee award was reduced.

2 Added 5 Modified
Added SpaceX equity investment high

Added in current filing · verify on EDGAR →

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

Tesla made a new equity investment in SpaceX during the quarter, accounted for under the equity method with a fair value option election.

Added AI hardware company acquisition agreement high

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 disclosed a subsequent event: an agreement to acquire an AI hardware company for up to $2.00 billion in stock and equity awards, with most of the consideration contingent on service and performance milestones.

Substantive Edit Directors' compensation litigation fee award medium

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.

Current filing · verify on EDGAR →

The Court then significantly reduced the attorney fee award from $176 million to $71 million.

The Delaware Supreme Court reduced the attorney fee award in the directors' compensation derivative litigation, which will reduce the amount Tesla must pay and is recorded to additional paid-in capital.

Substantive Edit Resale value guarantee maximum exposure medium

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.

Tesla's maximum exposure under resale value guarantees nearly doubled.

Substantive Edit Tariff refund uncertainty medium

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.

Tesla added a new disclosure about a potential refund of tariffs previously paid due to a Supreme Court ruling, but has not recognized any receivable because recoverability and timing are uncertain. This could result in a future cash recovery.

Substantive Edit 2025 CEO Performance Award stock-based compensation high

Added in current filing · verify on EDGAR →

As of March 31, 2026, based on our current estimate of the achievement date, we had unrecognized stock-based compensation expense of $9.97 billion for the operational milestone that was considered probable of achievement over the term of the award, which we expect to be recognized over 9.4 years.

Tesla disclosed a new 2025 CEO Performance Award with unrecognized stock-based compensation expense for the probable milestone, plus additional amounts for milestones not yet probable.

Substantive Edit Benavides v. Tesla product liability verdict high

Added in current filing · verify on EDGAR →

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.

Tesla disclosed a new significant product liability verdict with compensatory and punitive damages related to Autopilot. The company has appealed and recorded an immaterial accrual, but an unfavorable outcome could have a material adverse impact.

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.

As filed

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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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 23, 2026 · How we verify