Deliveries lag, inventory rises

Tesla made money again in the first quarter, but it built far more cars than it handed to customers. (finance.yahoo.com) The company reported $477 million in net income on $22.39 billion in revenue for the quarter ended March 31, 2026. Tesla had already disclosed that it produced 408,386 vehicles and delivered 358,023, leaving a gap of more than 50,000 units. (cnbc.com; ir.tesla.com) That mismatch pushed vehicle inventory to about 27 days of supply, up from 15 days at the end of the fourth quarter, Yahoo Finance reported. Tesla also posted $1.44 billion in free cash flow, showing the business still generated cash even as unsold cars piled up. (finance.yahoo.com) For carmakers, days of supply is a simple measure: how long current inventory would last at the recent sales pace. A rise from 15 to 27 days means Tesla entered 2026 with more vehicles sitting in the system relative to deliveries than it had three months earlier. (finance.yahoo.com) Tesla’s results landed after a quarter in which analysts were already focused on weakening demand in its core vehicle business. Reuters reported that the production-delivery gap added to investor skepticism even as Tesla stayed profitable and cash-flow positive. (reuters.com) The auto business is still where most of Tesla’s money comes from. CNBC reported automotive revenue rose 16% from a year earlier to $16.2 billion, but the company is also facing sharper competition from Chinese brands including BYD and Xiaomi. (cnbc.com) Tesla told investors it plans to sell “more affordable trims” of the Model Y sport utility vehicle and Model 3 sedan. That move points to a familiar problem for the company: keeping factory output high while finding enough buyers for an aging lineup. (cnbc.com; assets-ir.tesla.com) The company used its shareholder update to emphasize newer bets beyond car sales, including robotaxis, artificial intelligence software and the Optimus humanoid robot. It also said it would step up investment in factories, batteries and computing infrastructure during 2026. (assets-ir.tesla.com; cnbc.com) That leaves Tesla with two stories at once in April 2026: a quarter that stayed profitable, and a car business that is still delivering fewer vehicles than it is making. (finance.yahoo.com; ir.tesla.com)