Tesla, Inc. stock research
FY2026 Q1
Tesla (TSLA) Gross Margin — Quarter Ended Mar 31, 2026
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin improved versus both the preceding quarter and the year-ago quarter, as cost of revenue declined at a proportionally faster rate than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin improved versus both the preceding quarter and the year-ago quarter, as cost of revenue declined at a proportionally faster rate than revenue.
- Gross margin strengthened sequentially and year-over-year, driven by a lower cost of revenue relative to revenue. The improvement is observable even as absolute gross profit decreased from the prior quarter.
- Compared to the preceding quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue and gross profit were both higher, and gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.1%
Gross profit
$4.7B
Revenue
$22.4B
Cost of revenue
$17.7B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+4.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $22.5B | $3.9B | $18.6B | 17.2% |
| Sep 30, 2025 | $28.1B | $5.1B | $23.0B | 18.0% |
| Dec 31, 2025 | $24.9B | $5.0B | $19.9B | 20.1% |
| Mar 31, 2026 | $22.4B | $4.7B | $17.7B | 21.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+1.0 pts
Year-over-year change
Mar 31, 2025
+4.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin strengthened sequentially and year-over-year, driven by a lower cost of revenue relative to revenue. The improvement is observable even as absolute gross profit decreased from the prior quarter.
Compared to the preceding quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue and gross profit were both higher, and gross margin was also higher.
Monitor the trajectory of cost of revenue relative to revenue, as the current margin improvement depended on a proportionally larger decline in cost of revenue.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Tesla, Inc. (TSLA) | 21.1% |
| General Motors Company (GM) | 18.2% |
| Ford Motor Company (F) | 18.4% |