Tesla remains in the black in the first quarter of 2026, but profitability appears to have slowed compared with the past.

On April 22 local time, major foreign media outlets including IT publication Ars Technica reported that Tesla posted first-quarter net profit of $477 million. Revenue for the period was $22.39 billion, up 16 percent from a year earlier.

The core of the results is growth in the automotive business. Automotive revenue rose 16 percent to $16.2 billion. It is seen as a sign that deliveries, which earlier data showed rose more than 6 percent from a year earlier, translated into higher revenue.

Profitability, however, fell short of expectations. Operating margin came to 4.2 percent. That is low compared with past double-digit margins. Revenue from regulatory credit sales was $380 million, down from $595 million a year earlier, and leasing income also fell.

Cost burdens also increased. Operating expenses rose as the company invested in artificial intelligence and reflected part of a compensation package for CEO Elon Musk (일론 머스크) that shareholders approved last November. The compensation is linked to the number of active users subscribing to full self-driving, or FSD.

Tesla therefore presented changes in its FSD sales strategy as a key indicator. After it stopped one-time sales and shifted to a $99-a-month subscription model, active subscriptions were tallied at 1.3 million, up 51 percent from a year earlier.

By business segment, revenue growth in services stood out. Services and other revenue, including Supercharger fees, rose 42 percent. The energy storage business was weak. Revenue in that segment fell 12 percent to $2.4 billion.

Details were limited on future vehicle strategy. The possibility of launching a small electric car has recently been discussed, but the company made no separate mention and said it is "optimizing its product portfolio around vehicles suited to a fully autonomous future."

The humanoid robot business, by contrast, came with more detailed plans. Tesla plans to add Optimus robot production capacity at its Fremont plant in California from the second quarter. The plant will expand to annual output of 1 million units, and the Texas production line aims over the long term to secure capacity for 10 million units a year.

The results show Tesla still needs time to restore profitability despite revenue growth. Automotive and services revenue rose, but regulatory credits, leasing and parts of the energy storage business were weak. Expanding FSD subscriptions and strengthening investment in the robot business suggest it is building new growth engines beyond vehicle sales in earnest.

In related trading, Tesla shares on the Nasdaq closed up 0.28 percent at $387.51 from the previous day. They rose more than 1 percent in after-hours trade immediately after the earnings release.