Technical

Srinivasa Reddy Kandi: Tesla posts Q1 revenue growth, boosted by EV pricing and rising Full Self-Driving (FSD) subscriptions

April, 23, 2026-04:28

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Tesla posts Q1 revenue growth, boosted by EV pricing and rising Full Self-Driving (FSD) subscriptions:

Tesla reported year-over-year growth in both revenue and profit for the first quarter, supported by stronger automotive income and expanding services such as subscriptions to its Full Self-Driving (FSD) (Supervised) system. Active FSD subscriptions climbed significantly to 1.28 million.

Following the earnings release, Tesla’s stock rose around 4% in after-hours trading, largely driven by a notable increase in free cash flow alongside improved revenue and profitability.
The company posted total revenue of $22.38 billion, marking a 16% increase from $19.3 billion in the same period last year. Automotive revenue reached $16.2 billion, up from $13.96 billion a year earlier. Tesla also reported positive free cash flow of $1.44 billion—more than double its figure from the first quarter of 2025—surprising analysts who had anticipated higher cash burn.

Despite these gains, Tesla faced challenges in vehicle demand. The company delivered 358,023 electric vehicles globally during the quarter, falling short of analyst expectations of roughly 368,000 units. Production, however, outpaced deliveries, with 408,386 vehicles manufactured in the same timeframe.

Revenue growth was supported by higher average selling prices, increased service offerings, and a 51% year-over-year rise in FSD subscriptions. Still, Tesla’s broader performance reflects ongoing pressure in the EV market. In 2025, profits declined 46% year-over-year to $3.8 billion, largely due to weaker EV sales—a trend seen across the industry after the Donald Trump administration ended the $7,500 federal tax credit for electric vehicles.

While the latest quarterly results show improvement compared to last year, they remain below Tesla’s recent peak performance. The company reported $24.9 billion in revenue in the fourth quarter and $28 billion in the third quarter, the latter benefiting from a surge in purchases before the EV tax incentive expired.

Author: Kandi Srinivasa Reddy, Srinivasa Reddy Kandi, #KandiSrinivasaReddy, #SrinivasaReddyKandi