Although Tesla announced “more affordable” cars were on the way for over a year, those vehicles were finally introduced last October. The new model lineup includes simplified versions of the Model Y and Model 3, with prices starting at $39,990 and $36,990 USD, respectively. However, the new vehicles are not making a significant change in Tesla's overall sales figures, which is evident in the results of the first quarter of the year.
Redaksiya reports that Tesla announced today that in the first three months of the year, the company delivered 358,023 electric vehicles (EVs) globally. This figure is below the approximately 368,000 estimated by analysts. The company also noted that production significantly exceeded sales, with the final count of vehicles produced shown as 408,386. This suggests that Tesla delivered approximately 6% more cars in the first quarter of this year, meaning the increase compared to the first quarter of 2025 was precisely at this level; the first quarter of 2025 is considered the weakest quarter for the company in years.
The first quarter of 2025 results were also affected by Tesla halting its production lines for several weeks. The company stated that it stopped the production process to replace some equipment, and for this reason, it is emphasized that the first quarter of 2026 results are unlikely to show a significant improvement. These sales figures are even more noteworthy given that Tesla once promised to increase EV sales by 50% annually. The weak first-quarter results indicate that Tesla's overall sales could face a risk of decline for the third consecutive year; at the same time, it is noted that the company's profit figures have also “fallen”.
Tesla is not the only company struggling to increase EV sales, especially in the US market. The source reports that traditional automakers have pulled back from new EV plans they once put forward with great hopes, and in some cases, have completely canceled those plans. New companies have also faced difficulties: Rivian announced this morning that the company shipped just over 10,000 vehicles in the first quarter of the year, a figure that more closely resembles its repeated performance for each quarter. Rivian is preparing for the imminent shipment of its cheaper R2 SUV model to boost sales, but the cheapest version is reported to hit the market in late 2027. The company hopes the R2 will be quite successful from day one.
However, Tesla has not introduced a new, ready-for-mass-market model. The source notes that the company was working on a lower-priced EV, expected to be around $25,000 USD. But CEO Elon Musk halted that project in favor of fully focusing on the “CyberCab” initiative. Instead of the $25,000 car, Musk asked Tesla to develop simplified Model Y and Model 3 versions.
The only truly new model Tesla has introduced in the last few years has been the Cybertruck. The source reports that while this vehicle outperforms many other electric trucks, it has not met the expectations of Tesla, and particularly Musk, regarding the steel-bodied EV. In the first quarter of this year, Tesla announced it sold only 16,130 vehicles under the “other models” category; this figure includes the Cybertruck, as well as the Model S and Model X, which are now out of production.