Tesla stock fell 5.4% on Thursday after the company’s Q1 2026 vehicle deliveries of 358,023 units missed Wall Street estimates by roughly 7,600. Production of 408,386 vehicles created an inventory surplus exceeding 50,000 units, highlighting potential demand concerns. Energy storage deployments also dropped 38% from the previous quarter’s record. In response, analysts at Goldman Sachs and Truist Securities cut their price targets for Tesla while maintaining their Hold ratings, shifting investor focus to upcoming earnings and the company’s AI projects.
Tesla stock declined sharply following a Q1 2026 delivery miss and a significant drop in energy storage deployments. The company produced over 50,000 more vehicles than it sold, raising questions about demand.
Analysts cited the expiration of the federal EV tax credit and Elon Musk‘s polarizing presence as factors hurting sales. The company also quietly ended Model S and X production during the quarter to transition lines to Optimus robot manufacturing.
Goldman Sachs analyst Mark Delaney cut his price target on Tesla to $375 from $405, maintaining a Hold rating. He pointed to the tax credit expiration as the main driver of the year-over-year US sales drop, according to his analysis.
Truist also trimmed its target on the stock. Truist Securities analyst William Stein stated deliveries and energy storage lagged estimates.
Stein further noted the company provided no updates on AI projects or new vehicles. “Investors should focus more on AI projects, especially Tesla’s FSD technology,” he stated regarding long-term performance.
Wall Street sentiment on Tesla remains mixed, with 13 analysts bullish, 11 holding, and 7 recommending sell. The average price target of $394.34 implies modest upside from Thursday’s closing price of $360.59.
The next major test for the stock arrives with Tesla’s Q1 earnings report on April 22. Analysts have indicated that developments in Full Self-Driving and AI will be more critical for the long-term trajectory than quarterly delivery numbers.
