Tesla reports 15.78% revenue growth and 117% free cash flow surge in Q1 2026, but shares fall 12% year to date.
Tesla posted Q1 2026 revenue of $22.387 billion, up 15.78% year over year, alongside a 117% surge in free cash flow and a 490 basis point expansion in automotive gross margin to 21.1%. Despite the strong fundamentals, shares declined 12.38% year to date to $394.06.
The company’s Full Self-Driving subscriptions rose 51% to 1.28 million, while its Optimus robot project targets 1 million units annually. However, vehicle deliveries remain below 2 million, and inventory levels increased to 27 days from 22, fueling bearish sentiment. Meta recently overtook Tesla in market cap as Tesla’s decline outpaced Meta’s gains.
Shares fell 7.35% in the past week and 3.4% over the past month, reflecting investor skepticism despite improving metrics. Analysts remain cautious, citing demand softness and competitive pressures in China.