text: operating margins reduced at a manageable rate. We \nexpect ongoing cost reduction of our vehicles, including improved production \nefficiency at our newest factories and lower logistics costs, and remain focused on \noperating leverage as we scale.\nWe are rapidly growing energy storage production capacity at our Megafactory in \nLathrop and we recently announced a new Megafactory in Shanghai. We are also \ncontinuing to execute on our product roadmap, including Cybertruck, our next \ngeneration vehicle platform, autonomy and other AI enabled products.  \nOur balance sheet and net income enable us to continue to make these capital \nexpenditures in line with our future growth. In this environment, we believe it \nmakes sense to push forward to ensure we lay a proper foundation for the best \npossible future.Cash Operating cash flow of $2.5B\nFree cash flow2of $0.4B in Q1\n$0.2B increase in our cash and investments3in Q1 to $22.4B\nOperations Cybertruck factory tooling on track; producing Alpha versions\nModel Y was the best -selling vehicle in Europe in Q1\nModel Y was the best -selling vehicle in the US in Q1 (ex -pickups)\n\n01234O T H E R   H I G H L I G H T S\n9Services & Other gross margin\nEnergy Storage deployments (GWh)Energy Storage\nEnergy storage deployments increased by 360% YoY in Q1 to 3.9 GWh, the highest \nlevel of deployments we have achieved due to ongoing Megafactory ramp. The ramp of our 40 GWh Megapack factory in Lathrop, California has been successful with still more room to reach full capacity. This Megapack factory will be the first of many. We recently announced our second 40 GWh Megafactory, this time in