Q3 Deliveries Hit Nearly 500,000 as U.S. Demand Offsets Europe
Tesla delivered 497,099 vehicles in the third quarter of 2025, marking a 7% increase year-over-year, according to company data released Tuesday. However, shares dropped over 3% following the announcement as investors digested the implications of weaker production and the expiration of a key EV tax credit in the U.S.
Total production for the quarter reached 447,450 vehicles, down from 469,796 in the same period last year. Analysts had expected deliveries around 447,600, though independent forecasters like Troy Teslike had predicted up to 481,000. Tesla’s own consensus estimate, shared with investors on Sept. 26, pointed to 443,079 deliveries.
U.S. Demand Surges Before Tax Credit Deadline
Sales in the United States got a boost as buyers rushed to claim the federal electric vehicle tax credit, which expired Tuesday under President Trump’s July spending bill. This surge helped cushion the impact of a significant decline in European sales, where competition from BYD and Volkswagen continues to rise. Additionally, CEO Elon Musk’s political rhetoric has fueled consumer backlash across several EU countries.
Tesla does not report model-specific or regional sales, but noted it produced 435,826 units of its Model 3 and Model Y vehicles — the company’s most popular models. Year-to-date deliveries now stand at 1.2 million, down 6% from the same period in 2024.
Energy Business and Battery Deployments Expand
In the energy segment, Tesla deployed 12.5 GWh of storage products, including the Megapack and newly introduced Megablock systems. These large-scale batteries are used by utilities and businesses to store renewable energy or balance grid load. This is up from 9.6 GWh in Q2 and 6.9 GWh in Q3 2024.
Tesla’s energy growth is partly supported by internal demand from Musk’s AI venture, xAI, which has increasingly purchased Megapacks for data center infrastructure. The company’s battery products are designed to store electricity from renewable sources or take advantage of off-peak grid prices.
Stock Performance and Outlook
Despite short-term volatility, Tesla’s stock surged 40% in Q3, rebounding from a rough start to the year. As of Wednesday, shares were up 14% in 2025, trailing the Nasdaq’s 18% year-to-date gain. Tesla will provide more detailed financial updates on October 22 during its quarterly earnings call.
Meanwhile, competitors like Ford reported a 30.2% increase in EV sales this quarter, reaching just over 30,600 units — still far behind Tesla but signaling a more competitive U.S. landscape.
