Though Tesla delivered 6% more vehicles than a year ago, the shares fell 13% from the first quarter of 2024|Windmemorie|CC BY-SA 4.0
Tesla’s stock fell more than 5% on Thursday, marking its biggest drop this year, after the company reported weaker-than-expected deliveries and production last quarter.
The company delivered 358,023 vehicles, below analysts’ average forecast of 365,645. The EV maker had produced 408,386.
Though the company delivered 6% more vehicles than a year ago, shares fell 13% from the first quarter of 2024. The result was also disappointing as it came against a weak comparison period marked by production pauses.
Most of the sales came from Tesla’s best-sellers, the Model 3 sedan and Model Y SUV, which together accounted for 341,893 deliveries (95%). Tesla stopped producing its Model S and X vehicles in January to use the factory lines for building Optimus robots. Meanwhile, the Cybertruck and the fully electric Semi are yet to become major contributors.
Analysts say sales fell due to Tesla’s older lineup. The auto company also experienced a slowdown after the $7,500 EV tax credit was removed. However, Iran war-driven gas spike may push Americans toward EVs.
In its energy business, Tesla deployed 8.8 GWh of battery storage, down from 14.2 GWh in the previous quarter. Analysts say slower EV demand and supply issues could weigh on Tesla as it shifts focus to driverless technology.
Tesla’s stock is now down 20% in 2026, amid competition and pressure from CEO Elon Musk’s political controversies.