TLDR
- Tesla delivered 497,099 vehicles in Q3 2025, beating analyst estimates of 439,600 and setting a new quarterly record for the company
- Model 3 and Model Y deliveries reached 481,166 units, up 9.4% year-over-year and exceeding expectations of 424,828 units
- The company produced 447,450 vehicles during the quarter, slightly below estimates and down 4.8% from last year
- Tesla deployed a record 12.5 GWh of energy storage products during the quarter
- Analysts debate whether the strong performance was driven primarily by buyers rushing to claim the $7,500 federal EV tax credit before its expiration
Tesla reported third quarter delivery numbers on Thursday that surpassed Wall Street expectations. The electric vehicle maker delivered 497,099 vehicles during the three-month period.
The delivery total beat the Bloomberg consensus estimate of 439,600 vehicles. It also represented a 7.4% increase compared to the same quarter last year.
The results marked a new quarterly record for Tesla. Shares rose approximately 3% in premarket trading following the announcement.
Model 3 and Model Y vehicles made up the bulk of deliveries at 481,166 units. This represented a 9.4% increase year-over-year.
$TSLA 🇨🇳 The new Tesla Model 3 has been launched in China 🔥
The exterior continues the family design language, with key upgrades in two main areas: the front and rear logos have both been changed to an all-black design, and a front bumper camera has been added 🔥
This new… pic.twitter.com/6BcGUGiKHn
— Ming (@tslaming) October 2, 2025
The Model 3 and Y deliveries exceeded analyst estimates of 424,828 units. Other models contributed 15,933 deliveries to the total.
Production figures came in at 447,450 vehicles for the quarter. This fell slightly below the Bloomberg estimate of 450,313 units.
The production number also represented a 4.8% decrease compared to the same period in 2024. Model 3 and Y production totaled 435,826 units, down 1.8% from last year.
Energy Business Sets Record
Tesla’s energy storage division posted strong results during the quarter. The company deployed 12.5 GWh of energy storage products.
This marked a record for Tesla’s energy business. The division has been growing as demand for battery storage solutions increases.
Tax Credit Impact Debated
Gene Munster from Deepwater Asset Management commented on the delivery results. He noted the central question is how much the federal tax credit influenced sales.
The $7,500 federal EV tax credit was phased out by the Republican-led government. Many buyers likely rushed to purchase vehicles before the credit expired.
Munster estimates that over 90% of the delivery upside came from the tax credit. He acknowledged that China sales improved quarter-over-quarter.
However, he believes deliveries would still be down approximately 5% year-over-year without the credit boost. This compares to declines of 13.5% in June and 13% in March.
Ford CEO Jim Farley suggested EV sales could drop by half after the credit expiration. Tesla CEO Elon Musk warned after Q2 earnings of “a few rough quarters” ahead.
European Market Challenges
Tesla has faced headwinds in Europe during recent months. European EV registrations for Tesla fell to 14,831 units in August.
This represented a 22.5% decline compared to August 2024. New competition and Musk’s political stance may have affected European buyers.
Overall EV registrations in Europe rose 26.8% in August. This suggests Tesla lost market share while the broader EV market grew.
Tesla shares have climbed over 30% during September. The company will report full Q3 financial results on October 22nd after market close.
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