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Tesla Selloff Deepens as Q1 Miss Builds Record Inventory and Stokes Cash Fears

Rising AI and robotics spending with a weak first quarter puts the company’s near-term cash flow under scrutiny.

Overview

  • Tesla shares are down about 23% this year and are on pace for an eighth straight weekly drop after a first-quarter delivery shortfall.
  • Deliveries reached 358,023 versus roughly 370,000 expected, while production was about 408,300, leaving around 50,000 unsold vehicles that lock up cash until sold.
  • Management lifted 2026 capital spending to about $20 billion for AI infrastructure and humanoid robots, and Wall Street now projects more than $6 billion in negative free cash flow this year.
  • Energy storage deployments fell 38% from the fourth quarter to 8.8 GWh, weakening hopes that the battery business could offset slower car sales.
  • JPMorgan reaffirmed an Underweight rating with a $145 price target, warning of roughly 60% downside as EV demand cools and competitors such as BYD press their advantage.