Tesla posts record deliveries, concerns mount over EV demand post-tax credits

https://www.reuters.com/business/autos-transportation/teslas-quarterly-
deliveries-beat-analysts-estimates-2025-10-02/

Oct 2 (Reuters) - Tesla (TSLA.O), opens new tab announced record quarterly 
deliveries on Thursday, but concerns that an expiration of the U.S. tax 
credit for EVs would turn a rush of buying into a trickle weighed on its 
shares.

The Elon Musk-led carmaker went all in to drive sales before the 
withdrawal of the $7,500 federal tax credit, using a combination of 
discounts, financing deals, social media ads and customer emails.

"I'm skeptical that this will be sustainable and I think we could see a 
soft couple of quarters," said Elliot Johnson, chief investment officer at 
Evolve ETFs, which manages investments in Tesla.

The sales surge reflected pulled-forward demand, possibly to lock in 
incentives, rather than growing consumer interest, Johnson said, adding it 
would not be irrational for investors to "sell the news" and buy again 
next year.

Tesla shares were down 3.4% in afternoon trading. The stock has rallied 
recently - up nearly 14% this year as of Wednesday's close - after the 
company's board proposed a mega pay package for Musk, who has also bought 
more shares.

Tesla, like its rivals, received the credits from the government and used 
them to offer attractive leases. Following the expiry, Tesla has raised 
lease prices for its vehicles. The prices of Tesla vehicles, excluding the 
credit, remained unchanged.

On Thursday, the company said it delivered 497,099 vehicles for the three 
months ended September, up 7.4% from 462,890 a year earlier, and well 
above Wall Street expectations of 443,919 vehicles.

The deliveries included 481,166 Model 3 compact sedans and its best-
selling Model Y crossovers. The carmaker is set to report quarterly 
results on October 22.

Strong demand for its refreshed Model Y helped sales in China, said Troy 
Teslike, an independent Tesla researcher.

It also began delivering the six-seat Model Y L in China in September, a 
family-focused variant aimed at boosting demand in the world's largest EV 
market.

Europe, however, remained a weak spot as rivals aggressively promoted 
plug-in hybrids, while Chinese EV brands started gaining ground in the 
hyper-competitive market.

The company's European sales, including the UK, fell 22.5% from a year 
earlier in August, cutting its market share to 1.5%, according to data 
from the region's Automobile Manufacturers' Association.

Tesla's full-year 2025 deliveries are projected to be about 1.61 million, 
roughly 10% below 2024, according to Visible Alpha. Tesla will need to 
deliver 389,498 vehicles in the December quarter to meet that projection.

Meanwhile, smaller rival Rivian (RIVN.O), opens new tab on Thursday 
lowered the midpoint of its annual deliveries forecast, but beat estimates 
for quarterly deliveries owing to a boost in demand from buyers rushing to 
take advantage of tax credits.


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Thank you for cleaning up the disasters of the 2008-2017, 2020-2024 Obama 
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