Tesla’s cheaper cars aren’t helping its sales decline

Tesla has spent more than a year promoting “affordable” cars on the way, and it’s actually happening. It finally arrived last Octoberwith stripped-down versions of the Model Y and Model 3 starting at $39,990 and $36,990, respectively. But new vehicles don’t move the needle much for Tesla’s overall sales, first-quarter numbers show.

Tesla said Thursday it delivered 358,023 electric vehicles globally in the first three months of the year, lower than analysts’ expectations of about 368,000. The company also produced much more than it sold, with the final tally coming to 408,386.

This means that Tesla delivered only about 6% more cars in the first quarter of this year than it did in the first quarter of 2025, which is It was the company’s worst quarter in years. The first quarter 2025 numbers were also affected by the company closing production lines for a few weeks to replace some equipment, meaning the first quarter 2026 numbers will likely not represent a real improvement.

The sales figures are staggering for a company that once promised to increase electric vehicle sales by 50% every year. A weak first quarter means Tesla now risks seeing its total sales decline for the third year in a row – at a time when… Its profits are also declining.

Tesla is not the only company struggling to increase electric vehicle sales, especially in the United States. Legacy automakers have backed away from — and in some cases, It has been completely cancelled – Big plans and ambitions regarding new electric vehicles. Newcomers have also suffered. Rivian announced this on Thursday morning Just over 10,000 vehicles were shipped In Q1, it seems like roughly the same number is reported every quarter.

Rivian has a new model waiting in the wings, as it’s about to start shipping its cheaper R2 SUV, which should boost sales. The company does banking on the R2 object Hugely successful out of the gatealthough the cheapest version of it It won’t arrive until late 2027.

Tesla doesn’t have a new car ready for the mass market. Company king I was working on a low-cost electric car that was expected to be priced around $25,000. But CEO Elon Musk Kill the project In favor of sharing everything in CyberCab. Instead of that $25,000 car, Musk asked Tesla to develop the Model Y and Model 3.

The only new model that Tesla has launched over the past few years is the Cybertruck. Although it outsells most other electric trucks, it has been a complete failure in the face of Tesla and Musk’s steel-clad EV expectations. In the first quarter of this year, Tesla sold just 16,130 “other models,” which includes the Cybertruck and the now-retired Model S and Model