Tesla deliveries Expected to Fall as EV demand Weakens

Tesla is expected to report a drop in vehicle deliveries for the first quarter of 2026, reflecting softer demand and growing competition in key markets.

The electric vehicle maker, led by Elon Musk, is likely to announce its delivery figures before markets open on Thursday.

Analysts surveyed by Visible Alpha expect Tesla to deliver around 368,900 vehicles between January and March. This would mark an 11.8% decline from the previous quarter, though still a 9.6% increase compared to the same period last year.

Tesla’s internal estimate, based on 23 analyst forecasts, stands slightly lower at 365,645 units.

Demand has come under pressure due to rising competition in Europe and China, as well as the expiry of a $7,500 federal tax credit for EV buyers in the United States last September.

While Wall Street still expects modest growth for Tesla this year, market sentiment has weakened in recent months, with some analysts now predicting a possible decline in annual deliveries.

Current projections suggest Tesla could deliver around 1.7 million vehicles in 2026, rising to 1.84 million by 2027.

At the same time, Tesla is expanding its focus beyond electric vehicles. The company is investing in solar energy, humanoid robots and autonomous robotaxi services as part of its long-term growth strategy.