Tesla reported a 7% increase in vehicle deliveries for the third quarter, a number that beat analyst expectations. The solid performance was likely fueled by a last-minute rush of U.S. buyers trying to purchase an electric vehicle before a key federal tax credit expired on Tuesday. However, the company’s stock still sank after the report.
For the quarter, Tesla delivered 497,099 vehicles, up from 462,890 in the same period last year. The number was higher than the roughly 447,600 that Wall Street was expecting.
The strong U.S. sales helped offset a continuing sales slump in Europe, where the company is facing stiff competition and a consumer backlash against CEO Elon Musk’s political rhetoric. The rush to buy was directly tied to the end of a $7,500 federal tax credit for electric vehicles, which officially ended as part of a new spending bill signed by President Donald Trump.
Despite the strong delivery numbers, Tesla’s production for the quarter actually fell slightly compared to last year. The company’s stock has had a volatile year. After a brutal start to 2025, it jumped 40% in the third quarter and is now up 14% for the year, though it’s still lagging behind the broader Nasdaq.
The report also highlighted strong growth in Tesla’s energy business, which sells massive battery storage systems. The company deployed 12.5 GWh of these products in the quarter, a significant increase from both the previous quarter and the same period last year.
