Tesla is set to report its first-quarter 2026 earnings after the market close, with its stock down approximately 14% year-to-date, underperforming all other megacap peers while the S&P 500 has risen over 3% during the same period [1]. Wall Street analysts, according to LSEG estimates, anticipate earnings per share of 37 cents and revenue of $22.64 billion, representing about 17% growth from $19.3 billion a year earlier. This would mark Tesla's most robust revenue growth period since mid-2023 [1].
The company's core automotive business has faced challenges, including lackluster sales and increased competition from Chinese manufacturers such as Xiaomi and BYD, which offer technologically advanced but lower-cost electric vehicles compared to Tesla's aging lineup [1]. Tesla reported 358,023 vehicle deliveries for the first quarter, a figure that was lower than the prior quarter but up about 6% year-over-year. However, the company has recorded annual declines in deliveries over the past two years [1].
Investors are keen for CEO Elon Musk to address questions regarding Tesla's self-driving technology, humanoid robots, and the potential for a merger with SpaceX. While Tesla is testing a limited number of driverless cars in Texas for its ride-hailing service, the company still relies heavily on EV sales and does not yet offer a fully autonomous robotaxi-ready vehicle. Tesla's FSD (Supervised) system, which requires active human supervision, is available for $99 per month and was recently approved for sale in the Netherlands, with broader European approval being sought [1].
In the energy segment, Tesla deployed 8.8 gigawatt hours of battery energy storage systems in Q1 2026, a notable decline from the record 14.2 gigawatt hours in Q4 2025, disappointing Wall Street expectations [1]. Musk's attention has been divided, as he recently merged SpaceX with his AI venture xAI in a $1.25 trillion deal and is preparing the combined entity for a record IPO. In Tesla's previous earnings report, the company disclosed a $2 billion investment in xAI [1].
Tesla also faces ongoing consumer backlash related to Musk's political activities and rhetoric, which has added to the company's challenges in the market [1].
CONCLUSION
Tesla's upcoming Q1 2026 earnings report arrives amid significant stock underperformance, competitive pressures, and investor concerns about the company's strategic direction. Key figures such as revenue growth and vehicle deliveries will be closely watched, while questions remain about Tesla's future in self-driving technology and energy storage. The market impact is expected to be high as investors await clarity from CEO Elon Musk on these critical issues.