Tesla promoted for over a year that “more affordable” vehicles were forthcoming, and they finally launched last October, with basic versions of the Model Y and Model 3 starting at $39,990 and $36,990, respectively. However, initial sales data reveals these new models have not significantly influenced Tesla’s overall sales performance.

On Thursday, Tesla reported it delivered 358,023 electric vehicles worldwide during the first quarter, falling short of the analyst predictions of approximately 368,000. The production was significantly higher than sales, with total output reaching 408,386 units.

This indicates Tesla delivered roughly 6% more vehicles in this year’s first quarter compared to Q1 2025, which marked the company’s weakest quarter in years. The Q1 2025 statistics were also impacted by production lines being halted for several weeks to update equipment, suggesting that Q1 2026 numbers may not represent real progress.

These sales statistics are notable for a company that had previously assured a 50% annual growth in EV sales. The disappointing first quarter positions Tesla at risk of experiencing overall sales declines for the third consecutive year, coinciding with falling profits.

Tesla is not alone in facing challenges to boost EV sales, especially within the U.S. Established automakers have retreated from — and in some cases, completely abandoned — ambitious plans for new EV launches. New entrants have faced difficulties as well. Rivian revealed Thursday morning that it delivered just over 10,000 vehicles in the first quarter, roughly the same figure it appears to report every quarter.

Rivian does have a new model on the horizon, as it is poised to begin shipping its more affordable R2 SUV, which is expected to enhance sales. The company is counting on the R2’s success right from the start, even though the least expensive variant won’t be available until late 2027.

Tesla doesn’t have a new mass-market vehicle on the brink of release. The company had been developing a lower-priced EV anticipated to be around $25,000. However, CEO Elon Musk scrapped that project to focus entirely on the “CyberCab.” Instead of the $25,000 model, Musk directed Tesla to create the pared-back Model Y and Model 3.

The only genuinely new model Tesla has introduced in the past few years is the Cybertruck. While it outsells most other all-electric trucks, it has fallen short of Tesla’s — and Musk’s — expectations for the armored EV. In the first quarter of this year, Tesla managed to sell only 16,130 “other models,” which includes the Cybertruck and the discontinued Model S and Model X.