Tesla Q1 2026 Earnings — Revenue +15% but Net Loss -$4.28B, EPS -$1.27

Q1 2026 Key Metrics

| Item | Q1 2026 | Q1 2025 | YoY |

|------|---------|---------|-----|

| Revenue | $4,694M | $4,067M | +15.4% |

| Total Costs | $6,637M | $4,040M | +64.3% |

| Operating Income | -$1,943M | +$27M | Swing to loss |

| Net Income | -$4,276M | -$528M | Worse |

| EPS (diluted) | -$1.27 | -$0.18 | Worse |

| Shares (diluted, M) | 3,884 | 2,875 | +35.1% |

Full Year Comparison

| Item | FY2025 | FY2024 |

|------|--------|--------|

| Revenue | $18,674M | $14,015M |

| Operating Income | -$2,589M | +$466M |

| Net Income | -$4,937M | +$791M |

| EPS | -$1.69 | +$0.01 |

FY2025 was a historic inflection — from $791M profit in FY2024 to a -$4.94B loss, the largest in Tesla's history.

Why Costs Jumped +64% YoY

The +64% cost surge reflects Tesla running multiple simultaneous large-scale investments:

1. Optimus Robot R&D: Accelerating both factory automation and general-purpose humanoid robot development. Completing Optimus 5 — described as "the world's most advanced robot" — required massive spend on AI training infrastructure, robotic components, and software.

2. Supercharger global expansion: New openings in Colombia, Europe, and Asia as Tesla races to lock in charging infrastructure share. The network is now open to other EV brands, turning it into a platform revenue business.

3. FSD development: V14.x series R&D continues, including HW3 rollout and regulatory compliance versions for Europe and other markets.

4. Headcount expansion: Large-scale hiring of AI and semiconductor engineers in a competitive talent market — high compensation packages require significant cash and equity.

5. Stock compensation: Shares outstanding rose +35% YoY to 3,884M diluted shares, reflecting option exercises and new hire packages.

Revenue Quality

Revenue +15.4% came from all three segments: EV sales recovered in Q1 on the new Model Y launch; energy storage grew with Lathrop Megafactory ramping; services revenue grew on FSD subscriptions (1.29M active by Q1 end) and Supercharger revenue from third-party EVs.

Risks

The +35% share count increase is dilutive to EPS and continues to suppress per-share earnings. With costs 41% above revenue, near-term EPS pressure is structural. FY2025's record loss raises the bar on proving monetization in 2026.

Conclusion

Tesla is in peak investment mode before robotaxi, Optimus, and FSD subscription revenue convert at scale. The stock price reflects the option value of this conversion. Q2 2026 — with Lathrop at full capacity and Cybercab fleet expanding — is the first quarter where the energy and robotaxi revenue contribution becomes visible.