BENGALURU - Tesla began 2026 with its weakest quarterly vehicle deliveries in over a year, missing Wall Street expectations amid softening U.S. demand and rising international competition.
The electric vehicle giant delivered 358,023 cars globally in Q1, up just 6.3% year-over-year but below analyst projections of 368,903. It produced over 50,000 more vehicles than it sold, marking the largest inventory buildup in at least four years.
Analysts cite the expiration of the U.S. $7,500 federal tax credit last September as a major drag on domestic EV demand. In addition, delays in European approval for Tesla's Full Self-Driving (FSD) feature have hindered momentum abroad.
"The inventory build reflects both policy shifts and increasing competitive pressure," said Shawn Campbell, an investment advisor at Camelthorn Investments who owns Tesla shares.
Despite headwinds, Tesla’s China-made vehicle exports rose 23.5% year-over-year in Q1. Meanwhile, Tesla continues to expand in key European markets like France.
On the financial front, Tesla's stock dipped more than 4%, extending its losses this year to nearly 15%. Investors are increasingly looking beyond quarterly delivery figures, focusing instead on Tesla's long-term bets in solar energy, energy storage, and autonomous taxi services.
The company reported 8.8 gigawatt-hours of energy storage deployments in Q1-down 15.4% from the previous year-as that division adjusts following rapid growth.
Elon Musk’s other ventures also made headlines: SpaceX reportedly filed confidential plans for a U.S. IPO, eyeing a valuation of $1.75 trillion.