Tesla sold slightly more cars in the first quarter of 2026 compared to the same period last year, but the figures missed expectations and failed to impress investors.

The US EV giant run by Elon Musk has an “overproduction problem,” Ars Technica wrote, building many more units than it’s selling. But the modest year-on-year sales increase is nevertheless notable because US buyers did not benefit from now-extinct federal tax credits.

Rising gas prices stemming from the Iran war could also boost Americans’ interest in EVs. Tesla also faces steep competition in China: Sales for Chinese EVs are rebounding thanks to government and private-sector incentives.

Tesla recently became the first in China to offer a seven-year low-interest financing deal.