Tesla’s third-quarter deliveries beat expectations on Thursday, driven by a surge in United States EV buyers rushing to secure tax credits before they expired at the end of September.
The Elon Musk led company had repeatedly highlighted the deadline, pairing it with discounts and financing offers to accelerate sales and leases of its vehicles.
However, concerns about weaker demand in the coming quarters following the expiration of the $7,500 federal tax credit pressured Tesla’s stock, which slipped nearly 1 per cent in morning trading, according to Reuters.
“While the third quarter was strong, we expect fourth quarter sales will see a decline, consistent with the first half of the year, largely due to the US tax credit expiration,” said Seth Goldstein, senior equity analyst at Morningstar.
Europe continued to drag on performance as rivals pushed plug-in hybrids and Chinese EV makers gained momentum in the fiercely competitive market.
Tesla’s European sales, including the UK, dropped 22.5 per cent year-on-year in August, reducing its market share to 1.5 per cent, according to the region’s Automobile Manufacturers’ Association.
In total, Tesla delivered 497,099 vehicles in the third quarter, a 7.4 per cent increase from 462,890 a year earlier.
For full-year 2025, deliveries are projected at about 1.61 million—roughly 10 per cent below 2024 levels, according to Visible Alpha. To hit that target, Tesla must deliver 389,498 vehicles in the fourth quarter.
Tesla makes up the largest share of Musk’s fortune, and a recent rally in the company’s stock pushed his net worth past $500 billion on Wednesday, reinforcing his status as the world’s richest individual.
