Tesla Reports Sluggish EV Sales Amidst Competition
Tesla, facing a decline in passenger electric vehicle (EV) sales for the third consecutive year, reported first-quarter 2026 deliveries of 358,023 EVs, which fell short of Wall Street’s expectation of around 370,000. This marks a 6% increase from the same quarter in 2025 but highlights ongoing challenges as the company’s sales have been decreasing annually. In 2024, Tesla delivered 1.79 million EVs, dropping 1% from the previous year, and in 2025, deliveries further decreased by 9% to 1.63 million cars, leading to a 10% decline in automotive revenue.
The recent sales figures contributed to over a 10% decline in Tesla’s stock price as of April 7, following a more than 5% drop on April 2. Moreover, Tesla’s profit per share decreased by 47% in 2025, with a soaring price-to-earnings ratio of 316—significantly higher than the Nasdaq-100’s 29.3. Tesla’s competition with low-cost manufacturers like BYD, which recently surpassed Tesla in European sales, represents a significant challenge as it navigates its shift towards future products like the Cybercab and the Optimus humanoid robot, which could take years to yield substantial revenue.
