Tesla ended Q1 2026 with a record 50,363 unsold EVs as production outpaced deliveries, while it discontinued the Model S/X, signaling inventory risk and regulatory headwinds in a slowing U.S. EV market.
Tesla winds down Model S/X to push Cybercab and Optimus, with regulatory and safety headwinds; cybersecurity/breach stories add risk context for tech valuations.
Tesla’s price cuts for the Model Y and Model 3 haven’t moved the needle on demand: Q1 2026 deliveries rose only 6% YoY to 358k, under analyst expectations, while production outpaced sales, signaling inventory buildup amid a weak demand backdrop.
Tesla ends Basic Autopilot in new cars and ties Autosteer to a $99/month FSD subscription, pushing customers toward recurring revenue.
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