**Tesla is set to release its first-quarter operating results for 2026 on April 22, following two consecutive years of declining electric vehicle (EV) sales. In 2025, Tesla delivered 1.63 million vehicles, down 9% from the previous year, significantly impacting its revenue, which fell by 3%. Recently, the company reported 358,023 EV deliveries for Q1 2026, falling short of Wall Street’s estimate of 370,000, although this marked a 6% increase year-over-year.**
**The first quarter’s revenue is expected to have rebounded as Tesla’s core EV business still constitutes over 70% of total revenue. However, profit margins have been affected due to price cuts aimed at attracting more customers. As investors await Musk’s guidance on future product platforms, including the Cybercab robotaxi and Optimus humanoid robot, there are growing concerns about Tesla’s position in an increasingly competitive market, particularly against lower-cost competitors.**
**Investors should approach Tesla stock cautiously, as its P/E ratio currently stands at 327, compared to the Nasdaq-100’s 30.8, suggesting overvaluation. With the company needing to grow its earnings significantly or face a drastic decline in stock price, the outlook appears uncertain ahead of the April 22 report.**
