Tesla reported a disappointing first quarter, delivering 358,023 vehicles worldwide, falling short of Wall Street expectations of about 372,000, according to Bloomberg-compiled estimates and the company’s own release.
The miss marks Tesla’s second consecutive quarter below forecasts, underscoring continued pressure on its core automotive business as it navigates slowing electric-vehicle demand and a more competitive global market.
Despite the shortfall, deliveries were still up 6.3% year over year, benefiting from an easier comparison period when production of the Model Y was temporarily paused across multiple factories and the company faced consumer backlash tied to CEO Elon Musk. Even so, the results highlight the growing challenges Tesla faces in sustaining growth in its main revenue-generating segment, even as investor focus has increasingly shifted toward its longer-term bets on artificial intelligence, autonomous driving, and robotics.
As Bloomberg noted this week, a slower pace of growth may persist. Demand for EVs is cooling globally, US buyers no longer benefit from federal tax credits, and Tesla’s lineup is narrowing as Models S and X are phased out, all while competition intensifies.
“If they can show that there’s stability in the numbers without the tax credit — and they can, at least with the delivery number — I think that that would be a win,” said Gene Munster.
Notably, just days before reporting, Tesla had circulated a company-compiled consensus estimate suggesting deliveries of around 365,645 vehicles for the quarter.
That figure was based on forecasts from a wide range of sell-side firms, including Daiwa, Deutsche Bank, Cowen, Canaccord, Baird, Wolfe, Exane, Goldman Sachs, RBC, Evercore ISI, Barclays, Mizuho, Bank of America, Wells Fargo, Morgan Stanley, Truist, UBS, Jefferies, JPMorgan, Needham, HSBC, Cantor Fitzgerald, and William Blair.
At the time, Tesla emphasized that it does not endorse analysts’ projections, noting that the figures represent aggregated estimates rather than company guidance, with only prior quarters reflecting actual reported results.
Elon Musk said in a post on X on Wednesday that orders for the Model S and Model X have effectively ended, though some remaining inventory is still available. He added that there will be an official event to mark the close of the era, noting that he has a deep appreciation for those vehicles.
“We will have an official ceremony to mark the ending of an era. I love those cars,” Elon Musk said at the time.