Tesla delivered 358,023 vehicles worldwide in the first quarter. (Tim Goessman/Bloomberg)
April 2, 2026 10:25 AM, EDT
Tesla Inc. 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 April 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% from a year earlier, when the carmaker paused Model Y production at plants around the globe and dealt with a consumer backlash against CEO Elon Musk.
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 U.S. electric vehicle demand wavers.
Tesla shares fell 4% as of 9:05 a.m. before regular trading in New York, extending declines amid a broad market slump. The stock declined 15% this year through the April 1 close and has fallen 22% from a record high in December.
The U.S. — Tesla’s largest market — is entering a new era for EV demand following the loss of federal incentives that had been subsidizing purchases. The phase-out of those incentives at the end of September heavily skewed sales in the second half of last year.
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 U.S. market headwinds, Tesla is also grappling with rising competition from Chinese EV makers around the world and an aging vehicle lineup. The company is discontinuing its two oldest vehicles, the Model S sedan and Model X SUV.
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 results offer a preview of the Tesla’s earnings report scheduled for April 22.
