Tesla posted its weakest quarter for electric car deliveries in a year. Shares plummeted

Tesla delivered fewer electric cars in the first quarter of 2026 than the market expected. Moreover, the result was the lowest for the year. The company has yet to return its core business to growth, and even the energy shock from the U.S. war with Iran has yet to have an effect. Tesla shares collapsed, although recently investors were more interested in the company's AI and robots than in electric cars.

Tesla delivered 358,023 electric vehicles in the first quarter, the company said April 2. That's the weakest result in a year, Reuters noted. The data also fell short of analysts' expectations, who predicted about 370,000, CNBC wrote, citing StreetAccount estimates.

The bulk of deliveries are still provided by the mass-market Model 3 and Model Y - more than 97% of the company's total deliveries. The angular Cybertruck pickup truck, which began deliveries at the end of 2023, has not become massively popular, CNBC notes.

Tesla produced 50,363 more vehicles than it delivered in the quarter. That's the biggest difference in four years, indicating a build-up of unsold inventory, according to Reuters.

Shares of Tesla collapsed by 5.4% at the end of trading on April 2 - to $360.51. For comparison, the "technological" index Nasdaq Composite rose by 0.18% on that day.

The elimination of tax incentives for the purchase of electric cars in the United States and increased competition are negatively affecting the key business for Tesla, noted Reuters. Production of cars remains a key source of revenue for the company, writes CNBC. However, recently the main factor in the growth of Tesla shares was not car sales, but investors' hopes for Tesla's capabilities in the field of artificial intelligence, concludes Barron's.

The company has stopped taking orders with personalization for the outdated Model X and Model S, Tesla CEO Elon Musk said April 1. He is betting in the company's long-term strategy on the unmanned car Cybercab and humanoid robot Optimus, which will be produced on freed production lines, CNBC notes.

Demand for electric vehicles in general remains under pressure. For example, sales in the U.S. have declined by about 28% since the beginning of 2026, Business Insider cited data from Cox Automotive. At the same time, CNBC reported that there has been an increase in demand for used electric vehicles after fuel prices rose due to armed conflict in the Middle East. A few years ago, higher oil prices were driving Tesla's stock higher as investors looked to the rising popularity of electric cars due to the rising cost of gasoline. But now demand is more influenced by the elimination of a $7500 tax credit for electric cars in the U.S., Barron's notes.

Since the beginning of the year, Tesla stock has lost about 20% of its value.

Analysts disagree on Tesla shares. The stock has 26 buy tips (Buy and Overweight ratings) with 21 Hold and nine Sell and Underweight recommendations, MarketWatch shows.

The average target price for Tesla securities is $410.63, representing a 14% increase relative to the stock's closing price on April 2.

This article was AI-translated and verified by a human editor