Tesla Inc. shares traded in green on Thursday after the company reported third-quarter 2025 vehicle deliveries of 497,099, surpassing Wall Street estimates and posting year-over-year growth, though production fell short compared with the same period last year.
The results highlight a mixed performance for the electric-vehicle maker as it navigates shifting demand dynamics in key markets, including Europe and the United States.
Tesla shares were trading 0.39% higher at $461.23 at the time of writing.
Deliveries outpace expectations, production slips
For the quarter ended Sept. 30, Tesla delivered 497,099 vehicles, up 7% from the 462,890 delivered in the same quarter of 2024.
Analysts surveyed by FactSet had projected deliveries of roughly 447,600, while Tesla’s own company-compiled consensus suggested 443,079.
Independent researcher Troy Teslike had forecast 481,000 deliveries.
Despite the stronger-than-expected delivery figure, production fell to 447,450 vehicles, a decline from the 469,796 units built a year earlier.
Tesla does not break out sales or production by model or region, but said that 435,826 of its most popular Model 3 and Model Y cars rolled off production lines during the period.
Deliveries, considered the closest proxy for sales in Tesla’s reporting, suggest the company benefitted from a late-quarter surge in demand, particularly in the US ahead of the expiration of a federal tax credit for electric vehicles.
Market dynamics: US tax credit and European weakness
The expiration of a US federal tax credit for EV purchases, included in President Donald Trump’s July spending bill, drove a wave of buying activity.
Many American consumers rushed to take advantage of the subsidy before it lapsed, boosting Tesla’s US sales during the period.
In Europe, however, Tesla’s performance was weaker.
The company faced a sales slump exacerbated by consumer backlash against CEO Elon Musk’s political rhetoric and activism, along with intensifying competition from rival automakers.
Established carmakers such as Volkswagen and Chinese competitor BYD gained market share in the region, pressuring Tesla’s dominance.
Earlier this week, Ford reported a 30.2% increase in its all-electric vehicle sales, reaching more than 30,600 units for the quarter.
While still far behind Tesla in overall numbers, Ford’s growth underscores the broader competitive pressures facing the EV market leader.
Energy business expansion and stock market performance
Beyond its core automotive operations, Tesla reported strong growth in its energy business.
The company deployed 12.5 gigawatt-hours (GWh) of energy storage products in the third quarter, including its Megapack and newer Megablock systems. That marked a sharp increase from 9.6 GWh in the second quarter and 6.9 GWh in the same period last year.
Tesla’s Megapacks are typically used by businesses and utilities to store renewable energy, such as wind and solar power, or to balance electricity usage during peak demand.
Notably, Musk’s artificial intelligence company, xAI, has been a major buyer of Tesla’s storage systems in recent quarters.
On the market side, Tesla shares have staged a strong recovery in 2025 and rewarded its investors handsomely.
The stock rose 40% during the third quarter and has gained 14% year-to-date as of Wednesday’s close, outpacing earlier losses in the year.
By comparison, the Nasdaq Composite has advanced 18% in 2025.
Tesla’s latest results suggest a company benefiting from US policy tailwinds while contending with mounting challenges abroad.
With delivery growth offset by lower production and regional headwinds, the next quarters may determine whether Tesla can sustain momentum in a more competitive global EV market.
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