Tesla Plunges 15% on Robotaxi Delay, China Sales Slump

Tesla shares tumbled 15% on Monday after the company disclosed a 20% miss on first-quarter delivery targets, blaming supply chain disruptions and intensifying competition from BYD in China. Deliveries fell short at around 387,000 vehicles, down from expectations of 485,000, with China sales slumping amid BYD's aggressive pricing and expanded lineup. The electric vehicle maker also delayed its Robotaxi unveiling to 2027, citing technical hurdles in full self-driving software, further denting optimism around CEO Elon Musk's ambitious autonomy roadmap.

The setbacks underscore mounting pressures in the EV sector, where fading government subsidies in key markets like Europe and the US are curbing demand growth. Tesla's China market share eroded to below 7% in Q1, per industry data, as local rivals like BYD and XPeng capitalized on cheaper models and faster production ramps. Investors, already skeptical of Musk's timeline promises after repeated delays, punished the stock with heavy selling, triggering technical signals like the #TSLADeathCross on social platforms.

For traders, the bearish sentiment signals heightened volatility ahead, with TSLA testing key support near $220. Watch upcoming earnings for updates on Cybertruck ramp-up and energy storage margins, alongside BYDDY and XPEV for competitive read-throughs. A broader EV pullback could weigh on sector peers if subsidy cuts accelerate, though any positive Robotaxi trial news might spark a rebound.