tech
Tesla's stock suffers steepest drop of 2026 on disappointing deliveries report
Tesla is coming off a year of declining deliveries due in part to increased competition from rivals in China offering lower-cost models.
TL;DR
- Tesla's stock experienced its worst slump of 2026, dropping more than 5%.
- Q1 vehicle deliveries were 358,023, below analyst expectations.
- Deliveries showed a 6% increase from a year ago but a 13% decline from Q1 2024.
- The Model 3 and Model Y accounted for 97% of Tesla's deliveries last year.
- Energy business deployed 8.8 GWh of battery storage systems in Q1, down from 14.2 GWh in Q4 2025.
- Analysts noted global EV demand ex-China is under pressure and that Tesla is sacrificing its EV business for an autonomous future.
- Increased competition, consumer backlash against Elon Musk's politics, and the end of a federal EV incentive impacted sales.
- Tesla's automotive gross margins and supply chain disruptions are expected to be key discussion points during the Q1 earnings report.