Tesla electric vehicle sales fell 14% in the first quarter, with total sales reaching only 358,000 units

Tesla – Q1 2026 Report

Metric Value
Vehicle Deliveries (Q1 26) 358,023 units
Production (Q1 26) 408,386 units
Delivery growth vs Q1 25 +6%
Delivery growth vs Q1 25‑year‑ago –13%
Total deliveries in 2025 1.64 M (vs 1.79 M in 2024)
Model 3 and Y sales (Q1 26) 341,893 units
Share of Model 3/Y deliveries from total volume 97% last year

Key Points
1. Deliveries vs prior quarter
Tesla cut its delivered vehicle count by 14% compared to Q4 25, yet still saw moderate growth relative to the same period last year.

2. Analyst expectations vs reality
Professionals forecasted about 370,000 cars; the company announced actual sales of 365,645 electric vehicles – slightly above expectations.

3. Year‑over‑year trend
Over the past two years there has been a steady decline in production and delivery figures. In Q1 26 Tesla posted a 6% increase versus Q1 25, but total volume for all of 2025 fell to 1.64 M units.

4. Focus on Model 3/Y
These models accounted for almost the entire (97%) share of deliveries last year. Production of Model S and X has long been in decline – the company announced their production cessation and plans to repurpose Fremont plants for Optimus robots.

5. Strategic changes
Musk is actively pushing new directions: autonomous Cybercab taxi and humanoid robot Optimus, though neither are yet on sale. In January 2026 the company halted Model S/X production, redirecting manufacturing lines toward robots.

6. Cybertruck and Semi
Despite launching the Cybertruck at the end of 2023, it has not become a mass‑market hit. Tesla plans to increase deliveries of its fully electric Semi truck with an approximate range of 800 km.

7. Impact of external factors
The termination of the federal new EV subsidy program in September 2025 ($7,500) and intensified global competition, plus negative consumer reaction to Musk’s political views – key reasons for Tesla’s sales decline in 2025.

8. Energy business
In Q1 26 the company commissioned 8.8 GWh of battery energy storage systems, after a record 14.2 GWh in Q4 25. In 2025 Tesla delivered 10.4 GWh of its energy products – Powerwall for homes and larger Megapack/Megablock units for data centers and utility grids.

9. Stock price
Tesla shares fell 15% during Q1 26, continuing the negative trend that began two years ago. Similar declines were seen in January–March 2024 and 2025, but they stabilized in Q2 and ended the year at higher levels.

Conclusion

Tesla continues to face internal challenges (declining Model S/X production, shift to new products) and external factors (competition, changing government policy). Despite delivery growth versus last year, the overall trend remains negative, reflected in both sales and share price dynamics.