Tesla sales miss expectations

Despite a modest year-over-year increase in sales, Tesla is facing its most challenging market environment to date.

The company produced nearly 50,000 more vehicles than it was able to sell in the first three months of the year, leading to a massive inventory buildup.

Analysts point to intensifying competition from lower-cost Chinese rivals and a general cooling of consumer interest in EVs as primary factors.

Elon Musk's firm is now under pressure to prove that its future investments in AI and autonomous driving can offset the decline in its core automotive business.