Tesla Q3 sales hit record 497,099 units, but global EV challenges persist

Share via: Tesla sold 497,099 vehicles worldwide in July–September, up 7.4% year-on-year, with the surge driven by US buyers rushing to avail expiring federal tax credits. …Read More Tesla sold 497,099 vehicles worldwide in July–September, up 7.4% year-on-year, with the surge driven by US buyers rushing to avail expiring federal tax credits. Get Launch Updates on Notify me Tesla delivered a surprise in the latest quarter, reporting record global sales of 497,099 vehicles between July and September. The jump, a 7.4 per cent increase over last year, was far above Wall Street’s average projection of 439,600, and largely driven by a rush of US buyers taking advantage of federal tax credits before they expired at the end of September. The surge offers temporary relief for a company that has faced months of scrutiny over slowing demand, rising competition, and questions about its long-term strategy. But beneath the headline number, Tesla’s story looks far more complex. Also Read : India’s first Tesla Model Y goes to Maharashtra Transport Minister Sarnaik Boost from deadlines, not demandMuch of the growth came from Tesla’s core models, the Model 3 and Model Y, which together accounted for 481,166 vehicles, nearly 10 per cent higher than a year ago. By contrast, sales of its other vehicles, including the Model S, Model X and Cybertruck, fell 30 per cent. Industry analysts point out that the sales jump was not the result of fresh demand but a timing effect. The US government’s electric-vehicle incentive of up to $7,500 expired on September 30, pulling forward purchases that might otherwise have been spread across the next quarter. Rival carmakers such as General Motors, Ford and Hyundai saw similar surges. The risk for Tesla is a softer fourth quarter, something CEO Elon Musk himself has cautioned about. Investor focus shifts to future betsWhile the sales report was welcomed by markets, the focus now shifts to Tesla’s upcoming earnings on October 22 and its annual general meeting. Investors will vote on a new compensation package for Musk, potentially worth $1 trillion. The debate underscores a broader tension: Tesla’s reliance on big promises around autonomous driving, artificial intelligence and robotics, while its automotive business, still the backbone, grapples with uneven momentum. Global headwinds remainTesla’s position outside the US continues to weaken. In China, deliveries from its Shanghai factory fell in seven of the first eight months this year as local players such as BYD and Xiaomi strengthened their grip. Europe has proven even tougher, sales there declined 22 per cent in August and are down a third in the first eight months of 2025, even as the region’s EV market expanded by 27 per cent. Analysts now expect Tesla to post its second consecutive annual sales decline, projecting 1.61 million deliveries in 2025 compared with 1.79 million last year. The latest quarter’s record result, shaped by the expiry of tax incentives, may prove less a turning point and more a reminder of how dependent Tesla remains on policy shifts and consumer sentiment. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 03 Oct 2025, 08:29 am IST
Source: hindustantimes.com