Tesla reported record vehicle deliveries in the third quarter, driven by a surge in U.S. electric vehicle purchases ahead of the federal tax credit deadline, marking a rebound from a sluggish start to the year.
The automaker delivered 497,099 vehicles worldwide in the quarter, a 7.4% year-over-year increase, exceeding Wall Street’s projection of 439,612 units, according to the released figures.
The short-term surge in sales, fueled by the tax credit deadline, gave a much-needed boost to Tesla’s main automotive division, which had been experiencing a downturn over the past two years due to an aging vehicle lineup, increasing competition, and consumer pushback related to CEO Elon Musk’s political involvement.
Tesla’s robust sales performance was spurred by impressive shipments of its Model 3 sedan and Model Y crossover, which together accounted for 481,166 units, significantly surpassing analyst forecasts.
To take advantage of the approaching tax credit deadline, the company also rolled out special financing offers, price cuts, and appealing lease options. In China, Tesla launched deliveries of its new long-wheelbase, six-seat Model Y L in September, aiming to attract family-oriented consumers in the world’s biggest EV market.
Despite the strong sales, Tesla’s stock fell by as much as 3.2% by midday Thursday in New York, after soaring 33% in September—a surge that boosted its market value by $401.9 billion.
However, Europe remained a challenging market for Tesla, with sales across the region and the UK falling 22.5% compared to the previous year. This decline brought Tesla’s market share down to 1.5%, as rivals, particularly Chinese automakers and plug-in hybrid producers, continued to gain ground, according to the European Automobile Manufacturers’ Association.
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