Tesla reported a record-breaking quarter for vehicle deliveries, fueled by a surge in U.S. electric vehicle (EV) purchases ahead of the expiration of a $7,500 federal tax credit on September 30. The company delivered 497,099 vehicles worldwide in the third quarter, a 7.4% increase from the previous year, surpassing Wall Street’s average estimate of 439,600 units, according to Bloomberg. Despite the strong performance, Tesla’s shares dipped as much as 3.2% by noon New York time on Thursday, following a 33% stock surge in September that added $401.9 billion to its market capitalization. The temporary sales boost, driven by the tax credit deadline, provided a lift to Tesla’s core automotive business, which had faced challenges from an aging product lineup, rising competition, and consumer backlash tied to CEO Elon Musk’s political activities earlier this year, including his close work with President Donald Trump.
Tesla’s sales momentum was driven by strong deliveries of its Model 3 sedan and Model Y crossover, totaling 481,166 units, well above analyst expectations. The company also introduced financing deals, discounts, and attractive lease prices to capitalize on the tax credit deadline. In China, Tesla began delivering a new long-wheelbase, six-seat Model Y L in September, targeting family buyers in the world’s largest EV market.
Tesla's troubles in Europe continue
However, Europe proved a weak spot, with Tesla’s sales in the region and the UK dropping 22.5% year-over-year, reducing its market share to 1.5%, as competitors like Chinese brands and plug-in hybrid manufacturers gained traction, according to the European Automobile Manufacturers’ Association.
Looking ahead, analysts project a potential sales slowdown in the final quarter of 2025, with full-year deliveries expected to reach 1.61 million vehicles, about 10% below 2024 levels, per Visible Alpha. To meet this target, Tesla must deliver approximately 389,498 vehicles in the December quarter. Beyond its core business, Tesla is exploring new growth areas. In June, the company launched a supervised robotaxi service in Austin, operating with safety monitors in limited areas. The pilot has sparked interest but also regulatory scrutiny, with minimal near-term financial impact expected. Additionally, Tesla’s board has proposed a new CEO compensation package for Musk, potentially worth up to $1 trillion, tied to ambitious market-value and operational targets. The plan, which would grant Musk about 12% of Tesla’s shares in 12 tranches, is set for a shareholder vote next month.A
As Tesla navigates a post-subsidy market and intensifying competition, investors remain focused on Musk’s promises of growth in autonomous driving, artificial intelligence, and robotics, even as short-term challenges loom.
Tesla’s sales momentum was driven by strong deliveries of its Model 3 sedan and Model Y crossover, totaling 481,166 units, well above analyst expectations. The company also introduced financing deals, discounts, and attractive lease prices to capitalize on the tax credit deadline. In China, Tesla began delivering a new long-wheelbase, six-seat Model Y L in September, targeting family buyers in the world’s largest EV market.
Tesla's troubles in Europe continue
However, Europe proved a weak spot, with Tesla’s sales in the region and the UK dropping 22.5% year-over-year, reducing its market share to 1.5%, as competitors like Chinese brands and plug-in hybrid manufacturers gained traction, according to the European Automobile Manufacturers’ Association.
Looking ahead, analysts project a potential sales slowdown in the final quarter of 2025, with full-year deliveries expected to reach 1.61 million vehicles, about 10% below 2024 levels, per Visible Alpha. To meet this target, Tesla must deliver approximately 389,498 vehicles in the December quarter. Beyond its core business, Tesla is exploring new growth areas. In June, the company launched a supervised robotaxi service in Austin, operating with safety monitors in limited areas. The pilot has sparked interest but also regulatory scrutiny, with minimal near-term financial impact expected. Additionally, Tesla’s board has proposed a new CEO compensation package for Musk, potentially worth up to $1 trillion, tied to ambitious market-value and operational targets. The plan, which would grant Musk about 12% of Tesla’s shares in 12 tranches, is set for a shareholder vote next month.A
As Tesla navigates a post-subsidy market and intensifying competition, investors remain focused on Musk’s promises of growth in autonomous driving, artificial intelligence, and robotics, even as short-term challenges loom.
You may also like
Health Alert: This habit is prematurely aging the brain, and elderly-like diseases are occurring at a young age..
Women's World Cup: Hopefully we can keep Wolvaardt quiet, says Knight
Whooping cough can be fatal in children under age 2: Study
Global economy seeing structural transformation, India's capacity to absorb shocks strong: FM
Photo Gallery: Priyanka Chopra's killer look in a stylish white dress, see here...
