NEW YORK — Tesla reported increased vehicle deliveries during the first quarter, signaling potential recovery following a challenging year marked by consumer boycotts related to CEO Elon Musk’s political positions, though the numbers didn’t meet Wall Street projections.
The electric vehicle manufacturer announced Thursday that deliveries climbed 6% to reach 358,023 units, representing the company’s first year-over-year quarterly growth in three years. This uptick comes after a difficult period of declining sales attributed to an outdated product lineup and customer pushback against Musk’s conservative political commentary.
However, questions remain about how robust this recovery truly is.
The March quarter deliveries came in 6% below the 381,000 vehicles that Wall Street analysts had forecast, based on FactSet research data. The numbers also remained significantly below Tesla’s first-quarter peak from 2023, when the company delivered 423,000 vehicles — nearly 20% higher than current levels.
During that earlier period, Tesla held the distinction of being the world’s largest electric vehicle manufacturer, a position it maintained until late last year when Chinese competitor BYD overtook the company.
Tesla shares declined 3% to $369 in early trading following the announcement.
Lower-priced variants of Tesla’s Model X and Model 3, launched in late 2023, may have contributed to the improved delivery numbers. Specific information about models priced under $40,000 wasn’t disclosed but could be revealed when Tesla announces quarterly financial results on April 22.
Wall Street expects Tesla to report approximately 25 cents per share in net income — roughly double the prior year — on revenues of $23 billion, according to FactSet projections.
While Tesla stock has declined alongside broader market trends this year, it remains 30% higher than twelve months ago.
The company’s valuation continues to reach extraordinary levels, with shares trading at 181 times projected earnings compared to 22 times for the overall stock market.
This premium valuation reflects Musk’s successful messaging to investors about shifting focus from traditional vehicle sales toward the company’s potential dominance in autonomous robotaxis and Tesla’s Optimus humanoid robots for industrial and residential applications.
Meanwhile, before that futuristic vision materializes, competitors from Europe and China continue capturing market share. Chinese manufacturer BYD recently disclosed producing 2.26 million electric vehicles in the previous year, surpassing Tesla’s 1.64 million units to claim the global leadership position.
