Analysts Project Decline in Tesla's Q1 Vehicle Deliveries Amid Soft Demand

Deep News03-27 21:43

Tesla is expected to report weaker delivery figures for the first quarter. Analysts anticipate that the number of vehicles delivered will fall below both the previous quarter and the same period last year.

RBC Capital Markets forecasts Tesla will deliver 367,000 units in the first quarter, slightly below Visible Alpha's estimate of 370,000. UBS holds a more cautious outlook, projecting deliveries of 345,000, which aligns more closely with buy-side expectations.

Analysts note that demand in the U.S. market has softened, partly due to the expiration of electric vehicle tax credits and the fact that the fourth quarter is typically a seasonally slower period. In the fourth quarter of 2025, Tesla delivered 418,227 vehicles, followed by 336,681 units in the first quarter of 2026. The upcoming report is set to shed light on current demand trends and competitive market share among automakers.

RBC also indicated that the Model S and Model X are expected to be discontinued in the second quarter of 2026, signaling a strategic shift toward autonomous taxi services and humanoid robotics. This pivot may impact the company's traditional passenger vehicle sales. While bullish Tesla investors are enthusiastic about the company's advances in AI, the Optimus robot, and self-driving taxis, the automotive division remains the core profit driver and fundamental attraction for investors.

Investors will closely scrutinize the delivery report scheduled for release next week to gauge whether demand has stabilized and to assess management's future strategic direction.

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