text: net income1in Q1In the current macroeconomic environment, we see this year as a unique \nopportunity for Tesla. As many carmakers are working through challenges with the \nunit economics of their EV programs, we aim to leverage our position as a cost \nleader. We are focused on rapidly growing production, investments in autonomy \nand vehicle software, and remaining on track with our growth investments.\nOur near -term pricing strategy considers a long -term view on per vehicle \nprofitability given the potential lifetime value of a Tesla vehicle through autonomy, \nsupercharging, connectivity and service. We expect that our product pricing will \ncontinue to evolve, upwards or downwards, depending on a number of factors.\nAlthough we implemented price reductions on many vehicle models across regions \nin the first quarter, our 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