Tesla Shatters Q3 Sales Records Amidst Federal EV Tax Credit Deadline

Tesla set a new record by delivering 497,099 vehicles in Q3 2025, marking a 7.4% year-over-year increase and exceeding Wall Street expectations of around 448,000 units.

The electric vehicle giant’s impressive third-quarter performance was largely driven by a nationwide rush among U.S. consumers to purchase eligible electric vehicles before the $7,500 federal EV tax credit expired on September 30, 2025. Tesla actively promoted this deadline alongside other discounts and financing options to boost sales.

The mass-market Model 3 and Model Y were the primary contributors, accounting for 481,166 deliveries. The Model S, Model X, and Cybertruck added the remaining 15,933 units to the tally. Tesla’s production for the quarter stood at 447,450 vehicles, indicating that the company utilized existing inventory built up in previous quarters to meet the heightened demand.

Apart from vehicles, Tesla’s energy storage business also set a new record, deploying 12.5 GWh of energy storage products. However, Tesla’s European performance painted a different picture, with EV registrations falling 22.5% year-over-year in August, highlighting the increasingly fragmented global electric vehicle landscape.

Tesla’s stock initially surged 3.5% to 4% in early trading on October 2, pushing its market capitalization beyond the $1.5 trillion threshold. However, it later fell nearly 1% as analysts raised concerns about future demand, particularly for Q4 given the expiration of the federal tax credit.

Source: CNBC