Tesla beat a new record with a 7% sales increase in the third quarter, the automaker reported on Thursday after the $7,500 tax credit for new electric vehicles expired on Sept. 30.
The quarterly sales results were likely affected by customers who wanted to buy EVs ahead of the expiration date for the federal subsidies.
The final tally was 497,099 global vehicle deliveries, compared to 462,890 the same time last year. The new figure beat analysts’ projections of 456,000 deliveries. The last record was set in the fourth quarter of 2024, when 495,570 Teslas were delivered.
The sales figures put Tesla on pace with other automakers. General Motors and Ford said on Wednesday that their sales increased by 8% in the third quarter after record numbers of EVs were sold.
The news comes as Tesla CEO Elon Musk became the first person whose net worth hit $500 billion this week, indicating his EV company is performing well despite financial troubles earlier this year.
The previous two quarters were characterized by steep declines, fueled by Musk’s brief time in the White House and his association with President Donald Trump. The billionaire’s right-wing views prompted a number of protesters to vandalize Tesla cars and dealerships.
Musk ultimately cut ties with the Trump administration to focus on his businesses, including Tesla. It appears his strategy is working so far, although the automaker’s increased sales may not last very long.
Because the One Big Beautiful Bill Act repealed the tax credits on Tuesday, EV sales are expected to drop in the next few quarters. The Congressional Research Service estimates a 25% to 30% decline.
ELECTRIC VEHICLE SALES SURGE AS BUYERS TRY TO GET AHEAD OF SUBSIDY EXPIRATION TUESDAY
Despite the negative outlook, Tesla is proceeding with its plans to roll out autonomous vehicles and humanoid robots as part of a new lineup of products. Among them is the Tesla Cybercab, a fully autonomous robotaxi with a similar design to the Cybertruck.
Meanwhile, Musk’s $1 trillion pay package, proposed by Tesla’s board, is up for a shareholder vote in November. The historic pay package is said to keep Musk focused through the company’s next decade of growth.
