Tesla Q1 profit rises 17% as inventory swells to 27 days

Tesla reported a 17% increase in net income for the first quarter of 2026, earning $477 million. However, the company's growth narrative is challenged by a widening gap between production and deliveries, which pushed inventory levels to 27 days of supply. This indicates that Tesla is producing more vehicles than it can sell, a potential sign of softening demand or logistical bottlenecks. The results come amid increasing competition in the electric vehicle market and ongoing price cuts by Tesla to maintain market share. The inventory buildup is the highest in recent quarters, raising questions about Tesla's ability to sustain its growth trajectory. The company did not provide updated guidance for the full year, leaving investors cautious about future performance.