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Tesla’s EV sales top estimates with auto business rebounding
The results offered relief amid weak EV demand and competition in China
| Updated:
(David Zalubowski/File/AP)
Key Takeaways:
- Tesla delivered 486,532 vehicles worldwide in the third quarter, topping Bloomberg analyst estimates of 463,761 and signaling stronger-than-expected sales.
- The results offered relief amid weak EV demand and competition in China, though deliveries remained below the 497,099 recorded a year earlier.
- Wall Street expects modest sales growth this year after two annual declines, and Tesla shares rose 1.6% before regular trading.
Tesla Inc. reported better-than-expected sales for the third quarter, a sign of stability for the company’s core business at a challenging moment for the electric vehicle market.
The automaker delivered 486,532 vehicles worldwide in the period, according to a statement Oct. 2. That compared with 463,761 expected on average in analyst estimates compiled by Bloomberg.
READ MORE: Tesla launches high-volume Semi production
The results are a boon for Tesla following a period of declining auto sales and a lagging stock, with competition in the crucial China market and sluggish demand in the US pressuring the company. CEO Elon Musk is working to reorient Tesla around the futuristic business lines of artificial intelligence, driverless vehicles and humanoid robots.
The sales tally represents a year-over-year dip from the 497,099 vehicles Tesla delivered in the third quarter last year, a record driven by customers rushing to buy before the elimination of federal incentives in the U.S. Still, Wall Street anticipates Tesla will be able to modestly boost sales this year after two consecutive annual declines.
Tesla shares rose 1.8% before regular trading in New York. While the stock is down for the year, it has rallied in recent weeks on the hope that Musk could merge Tesla with the other major company he oversees, rocket maker SpaceX.
The carmaker is in the midst of a planned spending spree of more than $25 billion this year to build out its factory operations and stand up the robotaxi business. The company said in a filing this week that it lined up $30 billion of new loans and credit lines to support its growth.
Tesla recently narrowed its product lineup when it discontinued its pricey Model S and X vehicles. It now sells three consumer models: the popular Model Y and 3, along with the polarizing Cybertruck.
The results reaffirmed that the Model Y and 3 account for the vast majority of its sales. Aside from those vehicles, the company recorded just 8,295 deliveries of “other models.”
Tesla has additional models on the horizon, including the long-promised updated Roadster sports car. It’s also now producing the Cybercab, a robotaxi model that has no steering wheel or pedals, and is selling the Semi electric big rig.
Tesla’s energy business deployed 13.7 gigawatt hours during the third quarter, according to the statement, up from the 12.5 gigawatt hours of energy storage products it reported a year ago. It deployed 13.5 gigawatt hours in the second quarter.
In the EU, where sales plunged last year amid backlash against Musk, new Tesla registrations rose about 53% in August and 66% through the first eight months of 2026, according to the European Automobile Manufacturers Association. EV demand is surging there, fueled by soaring gas prices and an influx of cheaper Chinese-made EVs.
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That’s helping counter headwinds in other parts of the world. In China, where Tesla has been offering end-of-quarter discounts on Model 3 and Y vehicles, the EV maker is fighting to hold onto share in an increasingly crowded market. About 36,000 of Tesla’s 86,000 Chinese-built cars were shipped overseas for sale in August, according to data from China’s Passenger Car Association, as Shanghai-made deliveries declined month-over-month.
