Tesla Finally Exceeds Expectations: Sales Bring Smiles

Tesla boosted its sales in the third quarter thanks to the conclusion of federal tax credits in the US. However, a decline continues in Europe and China, and Musk anticipates challenging periods in the upcoming quarters.

Tesla achieved a sales increase in the third quarter of the year after a long period. Consumers accelerated their vehicle purchases, particularly due to the approaching end of the federal tax credits applied to electric vehicle purchases in the US. The company announced that it produced a total of 447,450 vehicles during the July–September period. Of this figure, 435,826 were Model 3 and Model Y, while the remaining 11,624 vehicles comprised other models such as the Model S, Model X, and Cybertruck. Production showed a 5% decrease compared to the same period last year.

Significant Increase Recorded in Deliveries

Tesla’s delivery figures painted a different picture from production. The company delivered a total of 497,099 vehicles to customers in the third quarter, with 481,166 being Model 3 and Model Y vehicles. The number of other vehicles was announced as 15,933. These figures represent a 7.4% increase compared to the third quarter of 2024. For companies like Tesla that adopt a direct sales model, deliveries are considered the most reliable indicator of sales performance. The largest factor in this increase was the $7,500 federal electric vehicle tax credit which expired on September 30th. This helped Tesla clear out its excess production inventory.

Experts predict that electric vehicle sales in the US will dramatically fall in the upcoming quarters after the end of the federal tax credit. Elon Musk had already stated that the company would go through a few challenging quarters. However, Musk believes Tesla will recover with its plans in AI and robotics. The company’s plans beyond electric vehicles include robotaxis and humanoid robots.

Tesla also announced its energy storage deployment, Powerwalls, and Megapacks, along with its quarterly vehicle delivery results. The company confirmed today that it installed 12.5 GWh of energy storage capacity during the quarter, compared to 6.9 GWh deployed in Q3 2024.

Partial Increase in Europe

On the other hand, the picture in international markets is not very encouraging. Tesla’s sales in Europe have significantly declined since the beginning of the year, and sales in China have also fallen due to pressure from competitors like local manufacturers BYD and Geely.

Reports indicate that sales increased in several European markets in September, including France (2.74%) and Denmark (20.5%), influenced by the updated Model Y. The US electric vehicle manufacturer continued to grow in Norway (14.7%) and Spain (60%).

However, in Sweden, the market where Tesla performed the worst in Europe during the first eight months of the year, the company’s registrations fell by 64%, and by 48% in the Netherlands. One of the main reasons for Tesla’s struggles this year is its aging product line. The company has not released a new model since 2020. The Tesla CEO stated that an affordable version of the Model Y might help in 2026, but added, “However, we expect things to remain tough for Tesla in a more competitive market environment.”

Tesla’s competitive problems were further exacerbated by rising consumer backlash against CEO Elon Musk, who helped Donald Trump win the US presidential election last year and supported far-right parties in Europe.

Tesla’s sales in the European Union fell by 42.9% year-on-year in the January-August period, and by 32.6% across Europe. Tesla argued that the refreshed Model Y, which began deliveries in many European markets in June, would lead to a recovery in European sales. In the same period, industry-wide electric vehicle sales in the EU increased by 24.8%.

Given Elon Musk’s prediction of “tough quarters ahead,” do you think Tesla’s focus on AI and robotics is a solid long-term strategy to overcome its current challenges in the automotive market?

Tesla boosted its sales in the third quarter thanks to the conclusion of federal tax credits in the US. However, a decline continues in Europe and China, and Musk anticipates challenging periods in the upcoming quarters.

Tesla achieved a sales increase in the third quarter of the year after a long period. Consumers accelerated their vehicle purchases, particularly due to the approaching end of the federal tax credits applied to electric vehicle purchases in the US. The company announced that it produced a total of 447,450 vehicles during the July–September period. Of this figure, 435,826 were Model 3 and Model Y, while the remaining 11,624 vehicles comprised other models such as the Model S, Model X, and Cybertruck. Production showed a 5% decrease compared to the same period last year.

Significant Increase Recorded in Deliveries

Tesla’s delivery figures painted a different picture from production. The company delivered a total of 497,099 vehicles to customers in the third quarter, with 481,166 being Model 3 and Model Y vehicles. The number of other vehicles was announced as 15,933. These figures represent a 7.4% increase compared to the third quarter of 2024. For companies like Tesla that adopt a direct sales model, deliveries are considered the most reliable indicator of sales performance. The largest factor in this increase was the $7,500 federal electric vehicle tax credit which expired on September 30th. This helped Tesla clear out its excess production inventory.

Experts predict that electric vehicle sales in the US will dramatically fall in the upcoming quarters after the end of the federal tax credit. Elon Musk had already stated that the company would go through a few challenging quarters. However, Musk believes Tesla will recover with its plans in AI and robotics. The company’s plans beyond electric vehicles include robotaxis and humanoid robots.

Tesla also announced its energy storage deployment, Powerwalls, and Megapacks, along with its quarterly vehicle delivery results. The company confirmed today that it installed 12.5 GWh of energy storage capacity during the quarter, compared to 6.9 GWh deployed in Q3 2024.

Partial Increase in Europe

On the other hand, the picture in international markets is not very encouraging. Tesla’s sales in Europe have significantly declined since the beginning of the year, and sales in China have also fallen due to pressure from competitors like local manufacturers BYD and Geely.

Reports indicate that sales increased in several European markets in September, including France (2.74%) and Denmark (20.5%), influenced by the updated Model Y. The US electric vehicle manufacturer continued to grow in Norway (14.7%) and Spain (60%).

However, in Sweden, the market where Tesla performed the worst in Europe during the first eight months of the year, the company’s registrations fell by 64%, and by 48% in the Netherlands. One of the main reasons for Tesla’s struggles this year is its aging product line. The company has not released a new model since 2020. The Tesla CEO stated that an affordable version of the Model Y might help in 2026, but added, “However, we expect things to remain tough for Tesla in a more competitive market environment.”

Tesla’s competitive problems were further exacerbated by rising consumer backlash against CEO Elon Musk, who helped Donald Trump win the US presidential election last year and supported far-right parties in Europe.

Tesla’s sales in the European Union fell by 42.9% year-on-year in the January-August period, and by 32.6% across Europe. Tesla argued that the refreshed Model Y, which began deliveries in many European markets in June, would lead to a recovery in European sales. In the same period, industry-wide electric vehicle sales in the EU increased by 24.8%.

Given Elon Musk’s prediction of “tough quarters ahead,” do you think Tesla’s focus on AI and robotics is a solid long-term strategy to overcome its current challenges in the automotive market?

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