Tesla delivered 358,023 battery electric vehicles in Q1 2026, beating Chinese manufacturer BYD by roughly 48,000 units. However, the company's performance was overshadowed by a significant increase in its global quarterly BEV lead of 310,389 units. The company's stock fell more than 5% after the news, marking a steepest single-day drop of the year. The gap between production and deliveries was also highlighted by a gap between Tesla's and deliveries, which caused a 5% drop in Tesla's stock. Despite this, Tesla has lost roughly 20% of its market value since January. The Chinese New Year holidays and domestic purchase volumes tend to negatively impact domestic sales during Q1 2025, making the period the weakest period for pure electric sales every year. Despite these setbacks, Tesla's European position has deteriorated sharply, with registration registration falling 17% and 88% in January from an already weak prior-year base, with Norway dropping 88% and France declining 42%. The company’s political activities stained forever in Europe and the US. The competitive pressure on Chinese manufacturers is increasing due to high tariffs on Chinese electric vehicles is compounding the competitive environment.