Tesla's Revenue Misses Estimates as EV Incentives Fade and Competition Intensifies

Tesla's first-quarter revenue fell short of Wall Street expectations, as the automotive giant faces waning demand due to the expiration of U.S. tax credits for electric vehicles.

The Austin-based automaker reported $22.39 billion in revenue, underperforming analysts' average estimate of $22.6 billion. The company's vehicle deliveries increased by 6.3% year-over-year but fell below analysts' predictions.

Facing pressure from competitors offering newer models at lower prices, Tesla has shifted focus to self-driving technology and energy storage. The company is also working on a smaller, affordable electric SUV, with production planned in China and potentially expanding to the U.S. and Europe.