As China Sales Decline, How Should You Play Tesla Stock in Q2?

Tesla (TSLA) has not exactly started the year on the front foot. The stock has slid more than 29.26% from its 52-week high and dropped nearly 21% over the last three months. Thursday, Apr. 2, added insult to injury when shares sank 5.4% after a weak first-quarter fiscal 2026 delivery report, then slipped another 2.2% in the very next trading session.

In Q1 2026, Tesla managed to grow deliveries by 6% to 358,023 vehicles, yet still came up short of the 365,000 analysts had penciled in. The energy storage unit, which had carried a bit of a golden child reputation, stumbled badly with deployments of 8.8 GWh. The figure not only trailed the 10.4 GWh posted a year ago but also missed the 14.4 GWh consensus by a mile.