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NASDAQ: TSLA Tesla, Inc. 10-Q

Tesla 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

capital expenditure guidance MD&A

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.

Q1 revenue and operating income MD&A

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.

automotive sales revenue and deliveries MD&A

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.

automotive gross margin MD&A

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.

services and other revenue MD&A

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.

energy storage revenue and deployments MD&A

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.

energy storage gross margin MD&A

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.

R&D expense MD&A

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.

SG&A expense MD&A

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.

other expense, net MD&A

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.

effective tax rate MD&A

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.

cash and investments MD&A

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.

operating cash flow MD&A

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.

capital expenditures MD&A

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.

debt issuance and repayment MD&A

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.

total debt outstanding MD&A

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.

resale value guarantee exposure Notes

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.

automotive regulatory credits remaining performance obligations Notes

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.

energy storage remaining performance obligations Notes

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.

effective tax rate increase Notes

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.

5 key changes 5 high relevance 4 sections

Key Changes

  • 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.

  • 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.

  • 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.

  • 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.

  • 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

MD&A

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

Q1 2026 revenue +16% YoY to $22.4B; operating income +136% to $941M; capex guidance raised to >$25B (from >$10B) for AI/compute infrastructure.

7 Added 1 Removed 3 Modified 16 Numbers
Substantive Edit mission statement / strategic focus 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. 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.

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). 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.

Added Robotaxi service launch and scaling high

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 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.

Added Cybercab pilot production high

Added in current filing · verify on EDGAR →

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.

Added Optimus production preparations 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.

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.

Number Change 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.

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.

Number Change Q1 revenue and operating income high

Previous 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.

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.

Number Change automotive sales revenue and deliveries high

Previous 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.

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.

Number Change automotive gross margin high

Previous 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.

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.

Number Change services and other revenue medium

Previous 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.

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.

Number Change energy storage revenue and deployments medium

Previous 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.

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.

Number Change energy storage gross margin high

Previous 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.

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.

Number Change R&D expense medium

Previous 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.

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.

Number Change SG&A expense medium

Previous 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.

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.

Number Change effective tax rate medium

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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.

Number Change cash and investments medium

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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.

Number Change operating cash flow high

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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.

Number Change capital expenditures high

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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.

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. 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.

Number Change debt issuance and repayment medium

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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.

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.

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.

Number Change total debt outstanding medium

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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.

Added Robotaxi infrastructure and operations medium

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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.

Added semiconductor fabrication and vertical integration medium

Added in current filing · verify on EDGAR →

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.

Added OBBBA impact on EV tax credits high

Added in current filing · verify on EDGAR →

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.

Substantive Edit OBBBA impact on energy storage costs medium

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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.

Substantive Edit regulatory credit program restrictions high

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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.

Current filing · verify on EDGAR →

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.

Show 2 minor / wording changes
Number Change other expense, net low

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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.

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.

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.

Removed production status table low

Removed from previous filing · verify on EDGAR →

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

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

Added $2B SpaceX equity investment, new 2025 CEO Performance Award with $10-120B unrecognized expense, tariff refund contingency, and $2B AI acquisition.

8 Added 2 Removed 5 Modified 4 Numbers
Added SpaceX equity investment high

Added in current filing · verify on EDGAR →

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 2025 CEO Performance Award high

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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 tariff refund contingency medium

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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 any receivable due to uncertainty, and notes potential revenue reductions if refunds are owed to energy storage customers under contractual obligations.

Added AI hardware acquisition high

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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.

Substantive Edit directors' compensation litigation settlement medium

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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 2018 CEO Performance Award litigation high

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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.

Substantive Edit Delaware derivative lawsuits dismissal medium

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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 FSD class action certification and appeal medium

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.

Added securities litigation over FSD disclosures high

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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.

Added Benavides 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. 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 discrimination litigation trial dates medium

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.

Number Change resale value guarantee exposure medium

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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.

Number Change automotive regulatory credits remaining performance obligations high

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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.

Number Change energy storage remaining performance obligations medium

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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.

Number Change effective tax rate increase medium

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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.

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.

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.

Substantive Edit related party transactions with SpaceX medium

Previous filing · view on EDGAR → · paraphrased

Transactions with related parties were immaterial for the three months ended March 31, 2025.

Current filing · verify on EDGAR →

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
Substantive Edit going private transaction litigation low

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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.

Substantive Edit balance sheet line item reclassifications low

Previous filing · view on EDGAR →

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 intangible assets and goodwill line items low

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

~65 words (-94% vs prior)

Tesla removed two material risk factors: tariff/trade policy uncertainty and public credibility/confidence challenges.

2 Removed
Show 2 minor / wording changes
Removed tariff and trade policy uncertainty low

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 public credibility and confidence low

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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.

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