Tesla Inc (NASDAQ:TSLA) reported first quarter vehicle deliveries that fell short of Wall Street estimates, delivering 358,023 vehicles compared with expectations of roughly 370,000.
The company said it produced 408,386 vehicles during the quarter. Energy storage deployments reached 8.8 gigawatt-hours over the same period.
Vehicle deliveries were down approximately 14% from the prior quarter, a period that had benefited from year-end demand, but showed modest growth compared with the first quarter of 2025.
The majority of Tesla’s volume continued to come from its Model 3 and Model Y vehicles, which accounted for 394,611 units produced and 341,893 delivered. The company’s other models, including its higher-end vehicles, contributed 13,775 units produced and 16,130 delivered.
Tesla noted that approximately 1% of total deliveries were subject to operating lease accounting, with slightly higher rates for its other models.
Analysts at Wedbush described the quarter as an “underwhelming start” to the fiscal year, noting that total deliveries of 358,000 vehicles came in below Wall Street expectations of roughly 370,000.
They noted that the shortfall reflected a more challenging demand environment, with Europe continuing to act as a headwind due in part to regulatory delays around full self-driving approvals.
At the same time, Wedbush highlighted relative strength in China, where deliveries in the early part of the year increased significantly compared with a year earlier, helping offset softness elsewhere.
The firm also noted that Tesla’s energy storage deployments came in below expectations as the company prepares for next-generation product shipments tied to recent partnerships.
Despite the softer delivery figures, the analysts said the results were largely anticipated given broader electric vehicle market conditions, adding that attention is increasingly shifting toward Tesla’s artificial intelligence initiatives.
“All eyes remain on Tesla’s AI strategy,” the analysts wrote, pointing to developments including robotaxi rollouts, expansion of full self-driving as a subscription service, and ongoing investments in robotics and AI infrastructure as central to the company’s long-term growth outlook.
They added that “we continue to believe the most important chapter in Tesla’s growth story is now beginning with the AI era,” while maintaining an ‘Outperform’ rating and a $600 price target on the stock.
The news sent shares of Tesla down 4.5% to about $364 on Thursday morning.