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Tesla first-quarter revenue rises 16 percent as AI, robot investment burden grows

Tesla remains profitable in the first quarter of 2026, but its profitability has slowed from past levels. Net profit totals $477 million and revenue rises 16 percent to $22.39 billion, driven by a 16 percent increase in automotive revenue. Operating margin is 4.2 percent as regulatory credit and leasing income fall and costs rise with AI investment and part of Elon Musk’s compensation package. FSD subscriptions reach 1.3 million.