Tesla stock pre-market drops over 4%, as the company's Q1 delivery volume falls short of expectations.

Tesla’s first-quarter global vehicle deliveries once again disappointed the market, failing to meet Wall Street expectations for the second consecutive quarter and putting pressure on the electric-vehicle maker that is trying to pivot its business.

The company said Thursday that its global deliveries in the first quarter this year totaled 358,023 vehicles, below the 372,160 average forecast compiled by analysts at Bloomberg, one of the weakest quarters in recent years. After the delivery data was released, Tesla’s premarket stock in the U.S. fell by more than 4%, further dragging down its year-to-date performance.

Although total deliveries were up 6.3% year over year, the base period used for that growth rate was itself relatively low—around the same time last year, Tesla had temporarily paused production at its global factories for its flagship Model Y and faced consumer backlash and resistance toward Chief Executive Elon Musk. With demand for electric vehicles in the U.S. currently soft, it further increases the difficulty of a recovery for Tesla’s core business.

Deliveries fell short of expectations, and the flagship models weighed heavily

In the first quarter, total combined deliveries of the Model 3/Y were 341,893 vehicles, up about 5.6% year over year, also below the market’s average expectation of 353,928 vehicles.

At the same time, total vehicle production was 408,386 vehicles, up 13% year over year and above the expected 388,169 vehicles; production of the Model 3/Y was 394,611 vehicles, up about 14% year over year, also higher than the expected 377,147 vehicles. The gap between production and deliveries suggests some inventory buildup, or reflects pressure on end-market demand.

Tesla’s stock remains under pressure; it has already fallen year to date

After the data was released, Tesla’s share price fell 3.6% in trading before the New York open. Coupled with weakness across the broader market, the decline extended further.

As of the close on Wednesday, the stock was down 15% since the start of the year, and has cumulatively retreated by about 22% from the all-time high it hit in December last year.

Analysts have continued to lower their delivery expectations for Tesla in recent weeks, but the final actual outcome still failed to reach the revised expectations, indicating that the market’s confidence in its core sales business remains not yet solid.

Investors are betting on future business; Tesla’s core auto business should not be ignored

Despite ongoing pressure on sales data, investors largely have turned their attention to Tesla’s strategic plans in artificial intelligence, autonomous driving, and robotics, and Musk has recently also been emphasizing these forward-looking business directions to the market.

However, the traditional auto business remains the company’s most important source of cash, and Tesla is headquartered in Austin. Against a backdrop of continued uncertainty in demand in the U.S. electric-vehicle market and an increasingly complex competitive landscape, whether Tesla can regain sales momentum remains a core concern investors cannot easily ignore.

Updating…

Risk warning and disclaimer

        The market is risky; invest with caution. This article does not constitute personal investment advice, and it does not take into account any specific investment goals, financial conditions, or needs of individual users. Users should consider whether any opinions, viewpoints, or conclusions in this article are consistent with their specific circumstances. Invest accordingly at your own risk, and you bear responsibility.