TSLA · 10-Q · 2026Q1 · Full report

FX / Currency Headwinds

Tesla, Inc. · 2026-04-23 · Importance 59 · Surprise 48

Tesla reports both revenue and expense impacts from foreign exchange movements in the quarter ended March 31, 2026. Automotive sales benefited from a weakening U.S. dollar which contributed to a $2.55 billion (20%) increase in automotive sales year-over-year, while foreign currency exchange fluctuations on intercompany balances contributed to an unfavorable change in Other expense, net of $416 million for the quarter. The company discloses $4.11 billion held in foreign currencies (primarily euros and Chinese yuan) and notes it does not typically hedge intercompany currency risk, exposing it to period-to-period FX volatility. Management identifies FX effects as a material driver of quarter-to-quarter swings in non-operating results and some cost measures.

Key facts

• Other expense, net was $(535) million for the three months ended March 31, 2026, which changed unfavorably by $416 million compared to the prior year period primarily due to fluctuations in foreign currency exchange rates on intercompany balances and mark-to-market adjustments on bitcoin digital assets. source
• Balances held in foreign currencies had a U.S. dollar equivalent of $4.11 billion as of March 31, 2026, consisting primarily of euros and Chinese yuan. source