US automaker Tesla announced increased revenue and profit in the first quarter of 2026, driven by higher average vehicle prices and a rise in subscriptions to its full self-driving system. Revenue surged to $22.38 billion, a 16% rise from the previous year, with automotive revenue reaching $16.2 billion from $13.96 billion in the same period of 2025. The company’s net income rose to $477 million compared to $409 million in Q1 2025.
Tesla’s free cash flow more than doubled to $1.44 billion, with shares rising by 4% post the earnings report release. Despite delivering 358,023 vehicles, below analysts’ expectations, Tesla produced 408,386 vehicles during the quarter. Active subscriptions to Tesla’s Full Self-Driving system grew by 51% year-on-year to 1.28 million.
The company’s bottom line was boosted by an increase in automotive one-time benefits related to warranty and tariffs. Tesla’s CFO, Vaibhav Taneja, mentioned an expected negative cash flow for the rest of 2026 due to a capital expenditure of $25 billion, triple its historical spending. Tesla introduced the six-seater Model Y L in India, a family-focused electric SUV emphasizing space, comfort, and performance, with online bookings open and deliveries starting from June 2026.
The Model Y L will be showcased at Tesla’s experience centers in key locations across India, including Bandra Kurla Complex in Mumbai, Aerocity in Delhi, and Gurugram, starting April 23, 2026.
