Tesla Earnings Shock: Stock Plunges -13.8% as Profit Margins Shrink
Will Elon Musk's aggressive pivot toward expensive AI infrastructure pay off, or has he permanently broken Tesla's profitability?
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive; and Energy Generation and Storage. The company offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty maintenance services and collision, automotive insurance services, as well as part sales and retail merchandise sale. It also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and…
| Quarter | Revenue | YoY | Net Income | EPS (dil.) | YoY | Gross Margin | Op. Margin |
|---|---|---|---|---|---|---|---|
| Q1 2026 Mar 2026 | $22.39B | +15.8% | $477.0M | $0.13 | +8.3% | 21.1% | 4.2% |
| Q4 2025 Dec 2025 | $24.90B | — | $840.0M | $0.24 | — | 20.1% | 6.3% |
| Q3 2025 Sep 2025 | $28.10B | — | $1.37B | $0.39 | — | 18.0% | 6.6% |
| Q2 2025 Jun 2025 | $22.50B | — | $1.17B | $0.33 | — | 17.2% | 4.1% |
| Q1 2025 Mar 2025 | $19.34B | — | $409.0M | $0.12 | — | 16.3% | 2.6% |
Data from Yahoo Finance. YoY compares the same quarter of the prior fiscal year.
Will Elon Musk's aggressive pivot toward expensive AI infrastructure pay off, or has he permanently broken Tesla's profitability?