Tesla reported first-quarter 2026 earnings showing continued profitability while revealing active Full Self-Driving subscriptions reached 1.3 million, a 51 percent increase year-over-year.
Active FSD subscriptions grew significantly due to the shift to a subscription-only model
The company ended the practice of selling Full Self-Driving software outright in favor of a $99 per month fee, which helped drive the increase in active subscriptions. This change aligns with part of Elon Musk’s compensation being tied to the number of active FSD subscriptions.
Tesla is expanding production capacity for humanoid robots in 2026
Tesla noted it is focused on optimizing its vehicle product portfolio for a fully autonomous future but provided more detail on humanoid robots, stating that the second quarter is when it starts adding capacity to its Fremont, California factory to build Optimus robots at a rate of 1 million per year. The Texas production line will be capable of 10 million Optimus robots per year.
For more on this story, see Apple and Tesla Drag Down Market Rally.
No mention of a smaller electric vehicle in future automotive plans despite earlier reports
Although reports surfaced earlier this month about a possible compact Tesla EV, the company makes no mention of it in its future automotive plans, emphasizing only its focus on vehicles designed for a fully autonomous future.
What is driving the growth in Tesla’s Full Self-Driving subscriptions?
The shift from one-time purchases to a $99 monthly subscription model, combined with executive compensation incentives, is driving the growth in active FSD subscriptions.
What are Tesla’s plans for humanoid robot production in 2026?
Tesla plans to start adding capacity in the second quarter to build Optimus robots at its Fremont factory at a rate of 1 million per year, with the Texas line capable of 10 million per year.