Tesla Sets Record 497K Q3 Deliveries Amid US Tax Credit Expiry, Europe Weakness

Tesla set a new quarterly delivery record in Q3 2025 by selling 497,099 vehicles worldwide, a 7.4% increase year-over-year, largely driven by a surge in U.S. demand as buyers rushed to benefit from the expiring $7,500 federal EV tax credit. Despite this strong performance, sales in Europe remained weak, declining 22.5% year-over-year due to consumer backlash linked to CEO Elon Musk's political stance and increased competition from other EV makers such as Volkswagen and Chinese brands. Tesla's production for the quarter was slightly lower than last year, indicating some deliveries were fulfilled from inventory, while the company also achieved a record 12.5 GWh deployment of energy storage products. Analysts express caution about the sustainability of Tesla's growth, anticipating a significant sales slowdown in the U.S. now that the tax credit has ended, with full-year deliveries projected to be about 10% below 2024 levels. The mixed results have led to volatile reactions in Tesla's stock price, reflecting both optimism about the strong sales quarter and skepticism about future demand amid political controversies and growing competition. Tesla continues to adapt by offering financing incentives and expanding its product lineup, including new models in China, while facing challenges in maintaining market share in Europe.