TeslaTSLA

hit the accelerator this quarter — but expectations slammed the brakes just as fast. The automaker reported Q1 2026 net income of $477M, a sharp drop from the $3B+ it earned in Q1 2022. Revenue rose 16% to $22.4B, supported by a rebound in US and Europe sales and stronger demand in Asia and Latin America as higher fuel prices pushed consumers toward EVs.

• Tesla produced 408K vehicles but delivered 358K in Q1, a ~12% gap that’s raising questions about demand as shares slide over 10% this year.
• Paid robotaxi miles nearly doubled quarter-over-quarter, expanding across Austin, Dallas, and Houston, though Waymo already operates in 11 cities with 20 more planned.

The future is expensive: Tesla’s biggest bets like the Cybercab, the Optimus robot, and a chip fab with SpaceX are still pre-revenue moonshots carrying huge expectations. Its $1.2T market cap still dwarfs every other automaker, even as clean air credit revenue shrinks and battery storage sales fell 15% in Q1. With diesel at $5.40 per gallon versus $3.53 a year ago, the demand case could strengthen, with S&P Global Visible Alpha’s Melissa Otto suggesting investors could begin reassessing Tesla.