TSLA Stock Heads For 8th Straight Week Of Price Decline — What’s Driving The Selloff?

• Last week, Tesla said that it delivered 358,023 vehicles in the first quarter of 2026, marking mild growth from the corresponding quarter of 2025, but a dive from the December quarter.
• According to data from Koyfin, 23 of the 48 analysts covering TSLA rate it ‘Buy’ or higher while 17 rate it ‘Hold’ and 8 rate it ‘Sell’ or ‘Strong Sell.’
• Earlier this week, JPMorgan analyst Ryan Brinkman warned investors to approach TSLA shares with a “high degree of caution.”

Tesla Inc. (TSLA) stock is headed for an eighth straight week of price decline if losses hold, after the company’s first-quarter deliveries disappointed investors.  

Last week, Tesla said that it delivered 358,023 vehicles in the first quarter of 2026, marking mild growth from the corresponding quarter of 2025, but a dive from the December quarter. The Q1 numbers fell below a company-compiled analyst estimate of 365,645 deliveries. Following the delivery report, several analysts slashed price targets on the stock.

Tesla is currently attempting to pivot into artificial intelligence and robotics in addition to electric vehicle manufacturing. The company is optimistic that its full self-driving driver assistance technology will enable fully autonomous driving in time, allowing for autonomous driving for individual customers while also enabling it to operate fleets of robotaxis.

The company’s humanoid robot Optimus is also slated to enter production this year.

Why The Slump?

According to The Future Fund managing partner Gary Black, Tesla’s downward slump is driven by analysts cutting EV delivery estimates, following the disappointing Q1 numbers and Tesla’s price-to-earnings ratio being re-rated down as investors question whether the company can scale its robotaxi business. The fund manager noted that Tesla’s price-to-earnings ratio is currently the highest among the Mag 7 stocks.

“TSLA investors  can argue that EV deliveries and P/E ratios don’t matter when TSLA is on the verge of solving for generalized unsupervised autonomy, but they are deluding themselves when EVs still comprise 70% of Tesla profits,” Black said in a post on X. However, he also noted that he continues to believe that the EV giant has the best full self driving product on the market.

Separately, Reuters reported earlier today, citing people familiar with the matter, that Tesla is developing an all-new smaller, cheaper electric SUV, signalling a return in focus on the company’s EV business.  

Analyst Consensus

According to data from Koyfin, 23 of the 48 analysts covering TSLA stock rate it ‘Buy’ or higher, while 17 rate it ‘Hold’ and 8 rate it ‘Sell’ or ‘Strong Sell.’ The average 12-month price target on the stock is $416.15, representing a potential upside of about 20%.

Earlier this week, JPMorgan analyst Ryan Brinkman warned investors to approach TSLA shares with a “high degree of caution.” He also lowered 2026 earnings per share (EPS) estimate to $1.8 from $2, below consensus expectations, warning that expansion into higher-volume vehicle segments carries execution risks tied to demand, competition and pricing pressure.

How Did Retail Traders React?

On Stocktwits, retail sentiment around TSLA stock improved from ‘extremely bearish’ to ‘bearish’ territory over the past 24 hours, while message volume remained at ‘high’ levels.

TSLA stock has gained 27% over the past 12 months. 

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