Tesla's profits rose 17% in Q1. Its growth story didn't keep pace

Tesla earned $477 million in the first quarter as a widening gap between production and deliveries pushed inventory to 27 days of supply

John Paraskevas / Newsday RM via Getty Images

Tesla $TSLA reported $477 million in net income for the first quarter of 2026 on Wednesday, up 17% from $409 million a year earlier, as revenue rose 16% to $22.39 billion.

The company produced 408,386 vehicles but delivered only 358,023 — a gap of more than 50,000 units — pushing global vehicle inventory to 27 days of supply, up from 15 days at the end of the fourth quarter.

Non-GAAP earnings per share came in at $0.41, up 52% year over year. Free cash flow reached $1.44 billion. The gross margin expanded to 21.1%, up from 16.3% in the first quarter of 2025.

The quarter's........

© Quartz