Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action news and analysis.

Good afternoon. Today is Tuesday April 2nd, and I'm your host, Kim Khan. Our top story so far.

Tesla is under pressure after Q1 deliveries disappointed. The company said it delivered

386,810 vehicles in the first quarter and produced

433,371 vehicles.

The deliveries tally missed the consensus estimate that had already been slashed significantly over the last three weeks.

Model 3 and Y production was 412, 376 units versus 439,194 consensus. By comparison, Tesla delivered a total of 484, 507 vehicles in Q4 and delivered

422-875 a year ago in Q1.

Other electric vehicle stocks fell in response to the stunning numbers.

Wedbush analyst Dan Eyes, who has been bullish on the stock,

said while anticipating a bad first quarter, this was an unmitigated disaster first

quarter that is hard to explain away.

We view this as a seminal moment in the Tesla story, for Elon Musk to either turn this around and reverse the black eye first quarter,

otherwise darker days are ahead.

Tesla said the decline in volume was partially due to the early phase of the production

ramp of the updated Model 3 at the Fremont factory

and factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an

arson attack at Gigafactory Berlin.

On Monday, the EV company announced price increases on certain models in China and the US.

The development was not a surprise, as Tesla had warned a few weeks ago, the customers should order vehicles soon

in order to avoid higher pricing.

The threat of higher prices may have brought in some extra sales at the very end of the quarter.

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