Tesla has reported a significant increase in its vehicle deliveries in the third quarter (Q3) of 2025, reaching a total of 497,099 units. This represents a 7% rise compared to the same period (Q3 2024) last year and marks the company’s first quarterly growth in three quarters. The figure also exceeded Wall Street expectations, which had anticipated deliveries closer to 444,000 vehicles. This surge is mainly the result of a rush by US consumers, who were eager to take advantage of the $7,500 federal electric vehicle (EV) tax credit before it expired on September 30, 2025. The company will release its full Q3 2025 financial results on October 22.
During the third quarter, the Elon Musk-owned EV giant produced a total of 447,450 vehicles and deployed 12.5 GWh of energy storage products. Most of this production came from the Model 3 and Model Y, with 435,826 units built and 481,166 delivered to customers. The company also produced 11,624 units of its other models, including the Model S and Model X, delivering 15,933 of these vehicles. Importantly, around 2% of Tesla’s total deliveries were under operating lease agreements.
Notably, in the United States, the expiring federal tax incentive clearly encouraged many buyers to act quickly. Apart from Tesla, other automakers (including Ford and General Motors) also experienced increased EV sales during this period. Meanwhile, to adjust to the end of the tax credit, Tesla raised its lease prices for key models. The monthly lease for the Model Y increased to $529–$599, while Model 3 lease rates grew to $429–$759 to offset the loss of federal subsidies.
The result comes as a big relief for the company as it is facing a difficult year. Tesla’s stock has fallen about 25% since the start of 2025, mainly due to slowing electric vehicle sales. Earlier in the first quarter (Q1) of 2025, the company reported its weakest results since 2022, with profits dropping 71% and revenue falling to $19.3 billion. Even in Q2 2025, the company struggled, delivering 384,122 vehicles (a 13% drop from a year earlier), while producing 410,244 units.
The development also comes as the firm seems to be pushing beyond car manufacturing into areas like AI, robotics, and autonomous transport. In July, the company entered the Indian market with the $70,000 Model Y, and last month, it revealed a potential $1 trillion payout for Elon Musk.
However, despite all these efforts, the company still faced challenges in international markets. For example, European sales fell sharply, with deliveries down 40% in July 2025 and 23% in August 2025 compared with the previous year. This decline was mainly due to competition from established brands like BYD, BMW, and Volkswagen, along with consumer concerns over CEO Elon Musk’s political affiliations.
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