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Tesla’s deliveries rose in the first quarter, but not as much as analysts had projected they would, sending the stock lower.
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In January, the EV maker reported a decline in sales for the fourth quarter and past year amid a weakening environment for EVs.
Tesla’s sales struggles improved in the first quarter, though not as much as Wall Street expected them to.
Shares of Tesla (TSLA) were down about 4% in recent trading after the company said it delivered 358,023 vehicles in the first quarter, up 6% from the same time a year ago, but short of the 368,900 that analysts surveyed by Visible Alpha called for. Tesla’s production of 408,386 vehicles also came in below the 446,060 vehicle analyst consensus.
Wedbush analysts said that while deliveries were underwhelming, that was “not a shock to us given the current EV backdrop across geographies while the company shifts gears to focus more on its AI strategy.”
While Tesla is looking to transform its business to focus on developing technologies like artificial intelligence, autonomous driving, and robotics, its electric vehicle sales still represent the bulk of the company’s revenue and remain a key metric for investors.
In January, Tesla said it delivered 418,227 vehicles in the fourth quarter, logging its second straight year of declining sales amid a weakening EV market and negative impact to demand from CEO Elon Musk’s involvement in the Trump administration.
Automakers have said in recent months that demand for EVs has taken a hit in the U.S. since the Trump administration allowed EV tax credits to expire last September. Tesla has announced plans to discontinue two models in the first half of this year, and several other manufacturers have announced pivots away from focusing on EVs.
Investors will get a more detailed look at Tesla’s first-quarter performance when the company reports earnings after the closing bell on April 22.
With Thursday’s drop, Tesla shares are down nearly 20% since the start of the year.
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