Tesla’s South Korea Sales Defy Global Slump, Q1 Deliveries jump 335%

Tesla TSLA -2.15% ▼ recently reported its Q1 2026 global deliveries, which missed expectations and raised concerns about the persistent weakness in the company’s electric vehicle (EV) business. However, on the brighter side, the Elon Musk-led company experienced a massive 335% jump in its Q1 deliveries in South Korea, taking the top spot for the first time in the country.

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Tesla Gains Ground in South Korea’s EV Market

Citing Korea Automobile Importers and Distributors, the Korea Herald noted that Tesla’s Q1 2026 deliveries surged 335.1% on a year-over-year basis to 20,964 units. The company surpassed BMW BMW +0.71% ▲ and Mercedes-Benz MBGAF +0.75% ▲ , which delivered 19,368 and 15,862 vehicles, respectively.

Tesla and other companies gained from improved demand for EVs in South Korea, driven by the announcement of subsidy guidelines in January, two months earlier than anticipated. Also, the spike in oil prices due to the U.S.-Iran conflict has revived EV demand in certain countries. Competitive pricing by Tesla also helped in fueling demand in the first quarter. Notably, the EV maker reduced the prices for some of its Model Y and Model 3 EVs made in China.

Wall Street Is Divided on Tesla Stock

Tesla reported Q1 2026 global deliveries of 358,023 units, which reflected a 6.3% year-over-year growth but a 14% decline from the previous quarter. Reacting to the lower-than-expected deliveries, JPMorgan reiterated a Sell rating on Tesla, urging investors to approach the stock with caution.

Also, analysts at Goldman Sachs and Truist lowered their price targets and reaffirmed their Hold ratings following the Q1 deliveries update.

Meanwhile, Tesla bulls remain optimistic about the company’s long-term growth potential, driven by robotaxis, Optimus humanoid robots, and AI ambitions. For instance, Wedbush analyst Daniel Ives reiterated a Buy rating on Tesla stock with a Street-high price target of $600, indicating 70% upside potential. Ives’ optimism is based on the company’s AI opportunities.

Is TSLA Stock a Buy, Sell, or Hold?

Currently, Wall Street has a Hold consensus rating on Tesla stock based on 13 Buys, 11 Holds, and eight Sell recommendations. The average TSLA stock price target of $393.97 indicates 12% upside potential. TSLA stock has declined more than 21% so far this year.

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