- Tesla has never had so many new cars sitting on lots.
- The company experienced an uptick in sales during the first quarter, but production significantly exceeded deliveries.
- Recently, Tesla discontinued the Model S and Model X to focus more on robotics and automation.
Tesla manufactured significantly more electric cars in the first quarter than it delivered, leading to a new record number of cars on lots. The American EV brand is sitting on 50,363 unsold vehicles, more than the company has ever had since going into business two decades ago.
The company manufactured 408,386 cars in the first quarter, a nearly 13% increase year-over-year. Meanwhile, deliveries accounted for 358,023 units, Tesla said in its latest quarterly report.
The Tesla Model X and Model S were discontinued on April 1.
The Elon Musk-led EV maker has traditionally been quite good at matching production numbers with deliveries, striking a delicate balance between manufacturing and demand. The last time it had such a big difference was in the first quarter of 2024, when production surpassed deliveries by 46,500 units, according to Business Insider.
Tesla’s sales performance is a win for the company, as the American car industry is facing a slowdown. That said, the company’s figures did not live up to analysts’ expectations, with a recent forecast by Bloomberg forecasting 372,160 sales.
After the Trump administration scrapped the $7,500 federal tax credit for new EVs last year, several automakers have been reevaluating their electrification plans. Ford has discontinued the F-150 Lightning pickup truck, Honda has canceled three upcoming electric models, and Stellantis has scrapped all of its U.S.-bound plug-in hybrid models.
Tesla, too, is slimming down its portfolio. The Model S and Model X were discontinued on April 1, after over a decade in service, leaving just the Model 3 and Model Y to bring in the money. The Cybertruck is available, too, but its sales numbers pale compared to the company’s breadwinners, with fewer than 16,000 units reaching new customers from January through March.
Overall, 28% fewer EVs have been sold in the U.S. in the first three months of 2026, according to Cox Automotive estimates, and car companies are feeling the heat. However, not all brands are slashing models left and right. Rivian is gearing up for the launch of the R2, BMW is bringing the new iX3 and i3, and Volvo is on track to start deliveries of the new EX60 later this year.
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