Tesla (TSLA) reported a blockbuster third quarter for global vehicle deliveries, fueled in part by buyers rushing to take advantage of the $7,500 federal EV tax credit before it phased out. The company delivered 497,099 vehicles in Q3, easily surpassing Bloomberg consensus estimates of roughly 439,800 and topping last year’s 462,890 units. The total sets a new quarterly delivery record for the company.
Tesla stock initially rose in premarket trading but gave back gains and dipped into the red shortly after the open, reflecting investor caution despite the delivery beat.
Global production for the quarter came in at 447,450 vehicles, while Tesla deployed a record 12.5 gigawatt-hours of energy storage products, underscoring the company’s growing footprint beyond automobiles. The strong results follow similar robust EV sales reported by General Motors (GM), Ford (F), and Rivian (RIVN), suggesting that U.S. consumers accelerated purchases ahead of the federal tax credit’s expiration under the Republican-led government.
Industry observers are now closely watching how sales may evolve in a post-subsidy environment. “While the numbers were better than expected, it’s important to remember this data is backward-looking,” CFRA analyst Garrett Nelson wrote Thursday. “Looking ahead, there are major questions regarding the impact of legislative changes on the tradeable emissions credit market and EV demand in an unsubsidized U.S. market, particularly given Tesla’s lack of new vehicle models.”
Tesla CEO Elon Musk had previously warned after Q2 earnings that the company could face “a few rough quarters,” noting that launches of cheaper EVs were delayed until after federal tax credits expired. The strong Q3 deliveries, therefore, represent a temporary boost before a potentially softer sales period.
While Tesla thrives in the U.S., the company continues to face challenges in Europe. According to the European Automobile Manufacturers’ Association (ACEA), Tesla EV registrations—a proxy for sales—fell to just 14,831 units in August, a 22.5% decline from a year ago. By contrast, total EV registrations in the region, including the UK and European Free Trade Association (EFTA) countries, grew 26.8% in August, with overall vehicle registrations up 4.7%, highlighting Tesla’s relative underperformance amid rising competition and potential buyer resistance linked to Musk’s political stances.
Despite these headwinds abroad, Tesla shares have surged over 30% in September, reflecting investor enthusiasm for the company’s broader ambitions in AI, robotics, and autonomous mobility. Products like the Cybercab, Tesla’s nascent robotaxi service, are central to that vision. “What really matters is autonomy. You need EVs on the road for autonomy to work,” said Gene Munster of Deepwater Asset Management. “There are a lot more Teslas on the road today than three months ago, while other automakers remain in denial about the importance of EVs in capitalizing on autonomy.”
Tesla confirmed it will release full Q3 financial results on October 22 after the market close, giving investors a clearer picture of profitability and margins amid the record deliveries.
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