(Reuters) -Tesla’s third-quarter deliveries trounced analysts’ estimates on Thursday as a rush to buy EVs in the U.S. before the expiry of a popular tax credit more than offset slumping demand for its vehicles in Europe.
Shares of the Austin, Texas-based company were up 3.1% in premarket trading after the Elon Musk-led automaker posted a record quarter for deliveries.
The company said it delivered 497,099 vehicles in the third quarter, up 7.4% from 462,890 a year earlier. Analysts expected about 443,919 vehicles for the July–September period, according to Visible Alpha estimates.
Analysts, however, are expecting a sales slump in the October-December period following the unusual sales boost in the latest quarter.
The company, for months, has been talking up the expiry of the $7,500 federal credit on September 30 as a reason for a potential sales boost.
It has been offering financing deals and discounts to spur sales and has been using the tax credit to offer attractive lease prices.
Europe, however, remained a weak spot. The company’s sales in Europe and the UK fell 22.5% from a year earlier, cutting its market share to 1.5%, according to data from the European Automobile Manufacturers’ Association, as rivals leaned into plug-in hybrids and Chinese brands gained ground.
The company delivered 481,166 units of its Model 3 compact sedan and Model Y crossover in the September quarter, well above Wall Street expectations.
Full-year 2025 deliveries are projected to be around 1.61 million, roughly 10% below 2024, according to Visible Alpha. Tesla will need to deliver 389,498 vehicles in the December quarter to meet that projection.
In China, Tesla began delivering the long-wheelbase, six-seat Model Y L in September, a family-focused variant that was expected to spur demand in the world’s largest EV market.
Tesla is also piloting a supervised robotaxi service with safety monitors and limited operating areas, launched in Austin in June. The trial has drawn interest and regulatory scrutiny, but any near-term financial impact is expected to be limited.
Tesla’s board has proposed a new CEO award for a shareholder vote early next month that could be worth up to $1 trillion if Musk is able to meet a series of market-value and operational targets.
The plan would grant Musk, already the world’s richest person, about 12% of Tesla in 12 tranches tied to operational and market valuation milestones.
(Reporting by Akash Sriram in Bengaluru; Editing by Anil D’Silva)
Comments