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Tesla reported third-quarter deliveries of 486,532 vehicles, beating analyst estimates, as a demand rebound in Europe helped offset the loss of U.S. tax incentives and stiffer competition in China.
Tesla beat Wall Street estimates for third-quarter deliveries on Friday, as a demand rebound in Europe offset the loss of U.S. tax incentives and stiffer competition in China.
Tesla Shares Rise on Strong Deliveries
Shares of the Austin, Texas-based company rose more than three per cent in early trading. Through last close, the stock had fallen more than 21% so far this year. The figures suggest Tesla's core car business, its biggest revenue driver, may be leveling off after two straight years of falling annual sales, even as investors increasingly look past quarterly deliveries to CEO Elon Musk's push into AI, robotaxis and humanoid robots.
Tesla's roughly US$1.40 trillion valuation depends heavily on those long-term ambitions, even though vehicle sales are still its largest source of revenue. Its robotaxi service is still small compared with Alphabet's Waymo, which runs commercial services in several U.S. cities. Tesla delivered 486,532 vehicles in the July-September period, compared with analysts' average estimate of 456,896 vehicles, according to data compiled by Visible Alpha.
It needs to deliver at least 311,448 vehicles in the fourth quarter to avert a third straight annual decline in deliveries. The strong numbers put Tesla on track for full-year deliveries growth following two years of declines, according to Morningstar analyst Seth Goldstein. He pointed to Full Self-Driving as being a differentiator that drives consumers to choose Tesla over other autos.
Demand Rebound Drives European Recovery
Demand looked strong going into the quarter as finance chief Vaibhav Taneja said in July Tesla exited Q2 with its largest order backlog since 2023. Unlike earlier this year, analysts have raised their full-year forecasts, now expecting 1.82 million deliveries in 2026, up from 1.65 million in the June consensus. After last year's slump in Europe, partly due to backlash against CEO Elon Musk's politics, EU registrations rose by about two-thirds through August.
In France, the Model Y became the best-selling car of any type, the first time a Tesla has topped that ranking. Exports from Tesla's Shanghai factory nearly doubled in July and August. Analysts expect the slow rollout of the company's Full Self-Driving software in Europe to help sales further as FSD is now approved in eight countries. Tesla's robotaxi service now runs without a safety supervisor inside the car in Texas and Florida.
Last month, the company added its purpose-built Cybercab to its existing robotaxi service in Austin. The company produced 464,391 vehicles during the third quarter, below estimates of 486,761 vehicles. That production figure came in below what analysts had expected, even as deliveries topped forecasts. The delivery beat provides some relief to investors who have grown cautious about Tesla's core automotive business amid rising competition and shifting incentive landscapes.
Cybercab Expansion Marks Autonomy Progress
Europe's recovery has been a particular bright spot, with registrations climbing sharply through August after a difficult 2024. Full Self-Driving approval across eight European countries is expected to support sales momentum in the coming quarters, analysts said. The technology remains a key selling point for Tesla as it seeks to distinguish itself from rival automakers. Tesla's robotaxi operations continue to expand in Texas and Florida, where the service now operates without a safety supervisor inside the vehicle.
The addition of the Cybercab to the Austin service marks another step in the company's autonomy push. Despite the quarterly beat, Tesla still faces pressure to sustain delivery growth through the end of the year. The fourth quarter will be closely watched to see whether the company can avoid a third consecutive annual decline.
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CTVToronto:This story was compiled and edited by the HeadTopics newsroom and HT AI from the reports above.
Tesla Quarterly Deliveries Electric Vehicles Europe Demand Robotaxi
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