Electric vehicle (EV) maker Tesla reported first-quarter deliveries of 358,023 vehicles, representing a 6.3% increase from the same period last year, but the figure fell short of analyst expectations.
The result missed consensus estimates of 365,645 deliveries, according to figures published on Tesla’s website. The company also reported vehicle production of 408,386 units, up 12.6% year-on-year.
Tesla shares fell 5.2% following the release, with the stock down 10.6% over the past month. The mixed results come after a volatile 2025 in which Tesla faced increased competition in the EV market and consumer boycotts linked to opposition to chief executive Elon Musk’s political positions.
The company did experience a brief sales surge in the third quarter of 2025, driven by the United States phase-out of a consumer tax credit that lifted demand before the incentive ended.
Wedbush analyst Dan Ives described Tesla’s sales figures as “underwhelming,” but noted that the focus in 2026 was on artificial intelligence and Tesla’s autonomous driving initiatives.
Despite the delivery shortfall, investor enthusiasm for Musk’s ambitious technology goals has helped maintain Tesla’s market capitalisation above US$1.3 trillion (AUD$2.2 trillion). This valuation significantly exceeds traditional automakers General Motors and Ford, both of which have market values under US$70 billion (AUD$122 billion).
Model lineup changes
In January, Tesla announced it would end production of the Model S sedan and Model X SUV, reducing its EV lineup to three vehicles: the Model 3 sedan, Model Y SUV, and the low-volume Cybertruck pickup.
The company continues development of a new version of its Roadster sports car, though no timeline has been provided after a decade of development work.
The results highlight the challenges facing Tesla as traditional automakers and new EV manufacturers increase their market presence. For Australian consumers, Tesla remains a significant player in the local EV market, though increased competition from brands including BYD, MG, and established manufacturers offering electric variants may impact future sales patterns.
Tesla’s performance in the first quarter sets the tone for a year where the company is expected to focus more heavily on its autonomous driving technology and artificial intelligence capabilities, rather than purely on vehicle delivery growth.
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