Tesla Plunges 12% on Weak Q1 Deliveries, Robotaxi Delay

Tesla shares tumbled 12% to a six-month low after the electric-vehicle maker reported first-quarter deliveries of 390,000 vehicles, undershooting analyst estimates by about 10%. The shortfall stemmed from softening demand amid high interest rates and intensifying competition from rivals like BYD and legacy automakers ramping up EV production. Production disruptions from a changeover to the updated Model Y at factories in Shanghai and Austin exacerbated the miss, marking Tesla's weakest quarterly deliveries since 2022.

The delay of the Robotaxi unveiling to October further dented investor sentiment, casting doubt on Chief Executive Elon Musk's narrative of autonomous driving as the company's next growth engine. Investors had pinned high hopes on the event, originally slated for August, to showcase progress toward a driverless ride-hailing service. With Tesla's core auto sales growth stalling—deliveries flat year-over-year—the postponement underscores execution risks in its pivot to AI and robotics, prompting questions about the sustainability of its premium valuation.

The selloff reflects broader bearish pressure, with #TeslaDeathRattle trending on X alongside clips from skeptical analysts. Trading volume surged, signaling heavy institutional selling. Traders should monitor upcoming earnings on April 23 for updates on margins, Cybertruck ramp-up and price-cut impacts, as well as any Robotaxi timeline revisions. A break below $140 could target $120 support, while reclaiming $170 might stabilize sentiment ahead of the delayed event.