Tesla Faces Delivery Slump, Musk Blames Tariffs

Tesla's first-quarter vehicle deliveries dropped 9% from a year earlier to 387,000 units, the company reported, marking its first annual decline in over a decade amid intensifying competition from Chinese EV makers and looming U.S. tariff threats on imported components. Chief Executive Elon Musk attributed part of the slump to these tariffs, which could raise costs for Tesla's supply chain reliant on global sourcing. The figures fell short of analyst expectations of around 450,000 units, triggering a 12% plunge in TSLA shares during after-hours trading.

The miss underscores mounting pressures on Tesla's core auto business, exacerbated by softening global demand for electric vehicles and delays in new model launches. Rivals like BYD have gained ground in China, Tesla's largest market, while policy shifts—including potential retaliatory tariffs from Beijing—threaten margins. Rumors of further delays to the Robotaxi unveiling, originally slated for August, have amplified investor concerns, shifting focus from Tesla's autonomous-driving ambitions to near-term execution risks.

For traders, key levels to monitor include TSLA's 200-day moving average near $220, with support at the recent low of $210. Upcoming earnings on April 23 will provide clarity on pricing, margins, and Cybertruck ramp-up, while any updates on tariff impacts or Robotaxi timelines could drive volatility. The broader EV sector faces headwinds from subsidy cuts and interest-rate sensitivity, pressuring peers like Rivian and Lucid.