Tesla’s EV sales miss expectations again in deepening slump

Published Thu, Apr 2, 2026 · 10:46 PM

[SAN FRANCISCO] Tesla posted one of its worst sales quarters in years, missing Wall Street’s expectations, as the carmaker struggles to turn around its core business and navigate an increasingly challenged electric-vehicle market.

The company delivered 358,023 vehicles worldwide in the first quarter, according to a statement on Thursday (Apr 2). Analysts anticipated 372,160 on average among estimates compiled by Bloomberg, a figure that steadily dropped in recent weeks. It’s the second consecutive quarter that Tesla has fallen short of projections.

Deliveries still managed to rise 6.3 per cent from a year earlier, when the carmaker paused Model Y production at plants around the globe and dealt with a consumer backlash against chief executive officer Elon Musk. Aside from that period, the latest quarter’s results were the lowest since mid-2022.

Investors have mostly been willing to overlook Tesla’s sales trend as Musk has refocused around the futuristic business lines of artificial intelligence, autonomous vehicles and robotics. Still, the traditional car business remains the primary cash generator for the Austin-based company, making it crucial that Tesla finds traction even as US electric-vehicle demand wavers.

Tesla shares fell 4.6 per cent as the markets opened in New York, the biggest intraday decline in almost two months. The stock declined 15 per cent this year through Wednesday’s close and has fallen 22 per cent from a record high in December.

The US – Tesla’s largest market – is entering a new era for EV demand following the loss of federal incentives that had been subsidising purchases. The phase-out of those incentives at the end of September heavily skewed sales in the second half of last year.

US President Donald Trump has sought to eliminate what he called an EV mandate by eliminating tax credits and weakening emissions and fuel-efficiency requirements, leading many automakers to reinvest in gas-powered models.

Aside from the US market headwinds, Tesla is also grappling with rising competition from Chinese EV makers around the world and an ageing vehicle lineup. The company is discontinuing its two oldest vehicles, the Model S sedan and Model X SUV.

Musk has said Tesla aims to begin volume production soon on a new two-seater model, the Cybercab, that will support the company’s nascent robotaxi business. The sales prospects are uncertain for that vehicle, which is designed to be operated autonomously and won’t have a steering wheel or pedals.

Tesla delivered a total of 341,893 Model Y SUVs and Model 3 sedans in the first quarter, with the two popular vehicles accounting for the bulk of the company’s sales and production. Deliveries of other EVs – the Model S, Model X and Cybertruck – rose to 16,130.

The deliveries were well short of Tesla’s overall production during the quarter, which came to 408,386.

The company’s energy business, which has been a relatively steady growth driver, was down during the period. Tesla reported that it deployed 8.8 gigawatt hours of energy-storage products during the quarter, compared with 10.4 gigawatt hours a year ago.

The results offer a preview of the Tesla’s earnings report scheduled for Apr 22. BLOOMBERG