# Tesla Q1 2026 earnings showed consensus-beating profits with substantial expansions in both gross and operating margins.

*genai · news · 2026-04-27 · Seeking Alpha*

## Key points

- Tesla's Q1 2026 gross and operating margins expanded by 478 and 214 basis points year-over-year.
- Tesla service revenues rose 42% to $3.75B, now exceeding 23% of automotive revenue.
- FSD adoption increased to 1.28 million subscriptions with 9 billion miles driven recorded.
- Tesla’s growing service and software revenue streams are reducing reliance on hardware and regulatory credits.

**Companies:** Tesla, Inc.

[Read the full story on Seeking Alpha](https://seekingalpha.com/article/4894686-tesla-q1-earnings-catalysts-galore-rating-upgrade)

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