Tesla Sales Fall 31% in Q1, Stock Follows
Shares of Tesla Inc. fell by 9% following an underwhelming first-quarter sales report, but executives say they have the demand and capital they need to meet their 2019 production goals.

Tesla Inc. sold 63,000 new units in the first quarter, including 50,900 Model 3 sedans. That’s more than double its Q1 2018 output but 31% fewer than Q4 2019.
Photo by Jakob Härter via Flickr
PALO ALTO, Calif. — Tesla Inc. stock fell 9% in premarket trading Thursday following Wednesday’s first-quarter sales report, which showed a 31% decline from the prior quarter. The electric-vehicle manufacturer sold 63,000 new units in Q1 after selling 90,966 in the last three months of 2018.
Some decline was expected following the expiration of the full $7,500 electric-vehicle tax credit offered by the federal government to U.S. car buyers on a manufacturer-by-manufacturer basis, triggered when Tesla sold its 200,000th unit last year. The credit was reduced to $3,750 in January and will be cut in half again in July.
Tesla also began shipping Model 3 sedans to China and Europe during the quarter. Logistical challenges prevented the factory from filling more than 10,000 orders, contributing to the shortfall. Tesla customers pay full price for their vehicles when they are delivered, not ordered, so “sales” are not necessarily reflective of demand.
The news is nonetheless worrisome for Tesla, which ramped up production and sales throughout 2018 but must continue to move units to pay off its debt. The company started the new year with $3.7 billion cash in hand after repaying $230 million to creditors in Q4, then paid off a $920 million bond in Q1, and now faces a $566 million bill in November.
In a statement, executives said the company ended the first quarter with “sufficient” reserves and assured investors its production goals are unchanged.
“We reaffirm our prior guidance of 360,000 to 400,000 vehicle deliveries in 2019,” the statement read, in part.
Originally posted on Auto Dealer Today
More Showroom

California Hybrids Reach State Record
The Golden State still leads the country in electric-vehicle registrations, but much like the rest of the U.S. its hybrid market share is up while full electrics stabilize after a dramatic first-quarter dip.
Read More →
My Mercedes in the U.S.
The German brand debuted its studio dealership concept for the first time in the states in Los Angeles, tapping Americans’ penchant for creative distinctions.
Read More →
Used Sales Hit Summer Drag
The vacation season, combined with high prices, has dented deliveries and added to inventories, though supply is still slim enough to keep listings elevated.
Read More →
California Launches EV Rebate Program
Participating automakers are matching the state's $13.5 million investment in new electric-vehicle rebates scheduled to take effect later this summer.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
The Trade-In Paradox
Retailing older cars with confidence in today’s market is a matter of establishing and following a clear process that can turn greater profit for auto dealers as they aim to meet used-unit hunger.
Read More →
Focus on Vehicle Cabins
The market for interior materials will grow in coming years as automakers look to meet consumer demand while staying competitive with changeups to sourcing and included features.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
European EV Market Hits Record
Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.
Read More →
Used EVs Outpace New
While North American electric-vehicle sales remain down year-over-year, May sales saw a 3% increase from April’s numbers as used EVs led the market.
Read More →