Tonight, Elon Musk has a conference call to make, where he will discuss Tesla’s first-quarter financial results. The number of unanswered questions ahead of the call is growing, much like the number of unsold cars piling up on Tesla’s lots.
Key Factors Contributing to the Pressure
- Unsold Inventory: Tesla built 408,386 vehicles in the first quarter of 2026 but delivered only 358,023. The gap between production and delivery is 50,363 cars, the largest unsold inventory in Tesla’s history.
- Battery Business Contraction: Tesla’s energy-storage unit, which was supposed to be its fastest-growing business, deployed 8.8 gigawatt-hours in the first quarter, a 40% drop from the previous quarter.
- Capital Expenditure: Tesla’s planned capital spending for 2026 is over $20 billion, more than double the amount spent in 2025. Additionally, the company has announced a new chip-manufacturing project called Terafab, with an estimated cost of $20 to $25 billion, which is not yet included in the spending plan.
The Big Picture
Tesla’s car business, battery business, and spending plan are all raising concerns ahead of the earnings call. While the company has absorbed worse quarters in the past, the combination of these challenges is unusual and may impact the company’s profitability.
What to Expect from the Earnings Call
The most interesting aspect of the call may not be which issue Musk addresses first, but which one he chooses to ignore. Tesla’s stock price will likely be affected by the company’s response to these challenges, and investors will be watching closely to see how the company plans to address its growing unsold inventory, declining battery business, and increasing capital expenditures.
Current Stock Price
Tesla’s stock price was up 1.12% at $390.73 at the time of publication, according to recent data.