Following the release, Tesla shares declined more than 4% on Thursday, April 2, 2026. Despite missing expectations, deliveries increased about 6% compared to the same period last year, when the company reported 336,681 vehicles. However, Tesla has faced ongoing challenges, including a 13% decline in deliveries during the first quarter of 2025 compared to 2024, and a drop in total annual deliveries from 1.79 million in 2024 to 1.64 million in 2025.
The majority of Tesla’s sales continue to come from its Model 3 sedan and Model Y SUV, which together accounted for 341,893 deliveries in the quarter. These models remain central to Tesla’s strategy as the company shifts focus toward emerging technologies such as autonomous vehicles and robotics, including its planned Cybercab and Optimus humanoid robot. Neither product has yet contributed to revenue, leaving Tesla heavily dependent on its core automotive business.
Tesla has also moved away from its higher-end models. The company confirmed earlier in 2026 that it ended production of the Model S and Model X, repurposing manufacturing capacity at its Fremont, California facility to support robotics development. Elon Musk stated on Wednesday, April 1, 2026, that orders for those vehicles had effectively concluded, with remaining units limited to existing inventory.
Meanwhile, newer products like the Cybertruck have yet to achieve widespread adoption since their introduction in late 2023. Tesla is expected to expand deliveries of its all-electric Semi truck in 2026, targeting the commercial freight sector with a range of up to 500 miles.
In Tesla’s energy division, the company deployed 8.8 gigawatt-hours of battery storage in the first quarter, down from 14.2 gigawatt-hours in the fourth quarter of 2025 and 10.4 gigawatt-hours in the first quarter of 2025. These systems include residential Powerwall units and large-scale Megapack installations used by utilities and data centers.
Tesla’s stock declined 15% during the first quarter of 2026, continuing a pattern of early-year weakness seen in the prior two years. Increased global competition, shifting consumer sentiment, and the expiration of a $7,500 U.S. federal electric vehicle incentive in September have weighed on demand. At the same time, rising geopolitical tensions and higher oil prices have contributed to increased interest in used electric vehicles.
Investors are expected to focus on Tesla’s margins and supply chain performance during its upcoming earnings call scheduled for Tuesday, April 22, 2026, at 5:30 PM ET.
