Tesla Q1 revenue rises, driven by EV sales and FSD subscriptions

Tesla saw an uptick in revenue and profit year-over-year, figures buoyed by an increase in automotive revenue and other services, including active subscriptions to its Full Self-Driving (Supervised) advanced driver assistance system, which reached 1.28 million. Tesla shares rose 4% in after-hours trading following the release of its first-quarter earnings report, driven by largely by a jump in its free cash flow, as well as increases in revenue and profit on a year-over-year basis. The company reported Wednesday revenue of $22.38 billion, a 16% increase from the $19.3 billion it generated in the first quarter of 2025. Its automotive revenue also rose to $16.2 billion, compared to $13.96 billion in the same year-ago period. Notably, the company reported positive free cash flow ‌of $1.44 billion more than double what it held in the first quarter of 2025. The figure surprised analysts who had expected the company to burn through more cash in the first quarter. That pop in revenue, which met expectations of analysts’ surveyed by Yahoo Finance, provided a bit of good news for the company, which has grappled with lagging EV sales. Tesla delivered 358,023 EVs globally in the first three months of the year, below analysts’ expectations of around 368,000. The company also produced 408,386 vehicles during that same period, far more than it delivered. The company’s first quarter revenue got a bump from higher average vehicle prices, services, and active FSD subscriptions, which grew 51% year-over-year to 1.28 million. Tesla’s business hit considerable headwinds in 2025 causing profits to fall 46% year-over-year to $3.8 billion. The dip was primarily due to lower EV sales — a problem other automakers also faced after the Trump administration ended the $7,500 federal tax credit for electric vehicles. Tesla’s first-quarter results, while positive in year-over-year terms, still shows some weakness when the previous three quarters are taken into account. The company’s fourth-quarter revenue was $24.9 billion and its third-quarter revenue was $28 billion, a figure propped up by consumers who bought an EV before the tax credit expired. Techcrunch event Meet your next investor or portfolio startup at Disrupt Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to save up to $410. Meet your next investor or portfolio startup at Disrupt Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to save up to $410. San Francisco, CA | October 13-15, 2026 REGISTER NOW The first quarter results also illustrate a company that still relies on its traditional EV business, along with service and subscriptions, and is not yet benefitting from its future bets on AI and robotics. Tesla’s net income was $477 million, compared to the $409 million in the first quarter of 2025. That Q1 2025 profit figure was notably off the mark, a 71% drop from the same period in 2024. Like the revenue story, Tesla’s first quarter profits are still notably lower than the past three quarters. The company’s fourth-quarter profit was $840 million and its third-quarter income was $1.37 billion. Tesla said a higher vehicle average selling price combined with an increase in vehicle deliveries, growth in services, and curiously, an increase in automotive one-time benefits related to warranty and tariffs boosted its bottom line. Tesla CEO Elon Musk has repeatedly warned that the company is in an awkward and potentially financially painful transition from its core EV business to an AI and robotics company. It has yet to scale production of its Optimus humanoid robot, which will be produced at its Fremont, California factory or meaningfully ramp up its robotaxi service. The company said preparations for its “first large-scale Optimus factory” will begin shortly in the second quarter. The company currently operates a limited robotaxi service without a human safety operator in Austin. It recently started operating that service in Dallas and Houston, but access to those vehicles remains severely limited. Topics earnings, Elon Musk, EVs, Tesla, Transportation When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Kirsten Korosec Transportation Editor Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast. She is also co-founder and co-host of the podcast, “The Autonocast.” She previously wrote for Fortune, The Verge, Bloomberg, MIT Technology Review and CBS Interactive. You can contact or verify outreach from Kirsten by emailing kirsten.korosec@techcrunch.com or via encrypted message at kkorosec.07 on Signal.

View Bio Sean O'Kane Sr. Reporter, Transportation Sean O’Kane is a reporter who has spent a decade covering the rapidly-evolving business and technology of the transportation industry, including Tesla and the many startups chasing Elon Musk. Most recently, he was a reporter at Bloomberg News where he helped break stories about some of the most notorious EV SPAC flops. He previously worked at The Verge, where he also covered consumer technology, hosted many short- and long-form videos, performed product and editorial photography, and once nearly passed out in a Red Bull Air Race plane. You can contact or verify outreach from Sean by emailing sean.okane@techcrunch.com or via encrypted message at okane.01 on Signal.

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