Tesla shares witnessed renewed selling on Thursday, 2 April, falling 4.61% to the day’s low of $363.65 apiece after the Elon Musk-led company reported vehicle deliveries and production that fell short of Wall Street estimates. This marked the second consecutive quarter the electric vehicle maker had missed analyst projections.
The company delivered 358,023 vehicles worldwide in the first quarter, down 14.4% from the fourth quarter, according to a statement on Thursday.
Analysts had anticipated an average of 372,160 units, based on estimates compiled by Bloomberg, a figure that had steadily declined in recent weeks.
On the positive side, Tesla delivered 6% more vehicles compared to the first quarter of 2025. However, that period last year was unusually weak, as the company was overhauling production lines and dealing with protests linked to CEO Elon Musk’s political involvement.
It delivered a total of 341,893 Model Y SUVs and Model 3 sedans during the quarter, with these two models accounting for the bulk of its sales and production. Deliveries of other EVs — the Model S, Model X and Cybertruck — rose to 16,130.
The EV giant produced 408,386 vehicles in the first quarter, including 394,611 Model 3 and Model Y units and 13,775 vehicles from other model lines.
The company is facing weak demand in its largest market, the US, along with intensifying competition. The expiry of the $7,500 federal tax credit at the end of September dealt a blow to US electric vehicle demand, removing a key incentive for buyers.
Beyond domestic challenges, Tesla is also grappling with rising competition from Chinese EV makers globally and an ageing vehicle lineup. The company is in the process of discontinuing its two oldest models—the Model S sedan and Model X SUV.
Notably, this marks the first time in the company’s history that sales have declined for two consecutive quarters.
Analysts have also trimmed their delivery forecasts for 2026, with some warning of a potential third straight annual decline. Tesla has already recorded annual sales declines over the past two years.
Energy business falls short of expectations
In addition to weak vehicle sales, the company’s energy business—previously a steady growth driver—also underperformed during the period. Tesla deployed 8.8 GWh of energy storage products in the quarter, below market expectations.
While investors remain focused on Tesla’s long-term ambitions in artificial intelligence, including robotaxis and humanoid robots, these initiatives are still in early stages and have yet to generate meaningful revenue.
The company launched its robotaxi service in a limited capacity in Austin, Texas, in June.
Meanwhile, Tesla is scheduled to report its full first-quarter financial results after market close on 22 April.
Tesla shares 27% off recent peak
The company’s shares, part of the ‘Magnificent Seven,’ have struggled to gain traction since hitting a record high of $498.83 apiece and have since declined 27% from that peak, based on the latest low.
The stock ended the first quarter of 2026 with a 17.34% decline, extending a weak trend seen over the past two years. Tesla shares had fallen during the January–March period in both 2024 and 2025 but rebounded in the remaining quarters to close those years on a stronger note.
(With inputs from Bloomberg and Reuters)
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