Tesla's Q3 sales dip but beat Wall Street expectations
Tesla delivered fewer vehicles in the third quarter than a year earlier, when buyers rushed to claim an expiring federal tax credit, but the results still topped analyst forecasts.
Tesla has reported its third-quarter production and delivery figures, showing a decline in vehicle sales compared to the record-setting same period last year, though the company still managed to beat Wall Street's expectations.
The automaker said it produced 464,391 vehicles between July and September, including 457,387 Model 3 and Model Y units and 7,004 other vehicles such as the Cybertruck, Cybercab, and Tesla Semi. Production of the Model S and X was discontinued earlier this year. The production total marks roughly a 3.8 percent increase over the same quarter last year, when Tesla produced 447,450 vehicles.
Deliveries to customers totaled 486,532 vehicles, comprising 481,166 Model 3 and Model Y units and 8,295 other vehicles. That represents a decrease of about 2.1 percent compared to the blockbuster third quarter of last year, when deliveries reached 497,099. Since Tesla sells directly to consumers, deliveries serve as the standard proxy for sales performance.
Tax credit expiration drove the drop
The sales decline had been widely anticipated following the expiration of the $7,500 federal tax credit for electric vehicle purchases on September 30 of last year. Tesla CEO Elon Musk had previously warned that the company faced several difficult quarters ahead due to the lost incentive and broader macroeconomic pressures.
At the same time, Musk expressed confidence that Tesla would rebound as its artificial intelligence initiatives mature, including robotaxis and humanoid robots. In July, the steering-wheel-and-pedal-free Cybercab began operating in Austin, though Musk's earlier prediction that half of the US population would have robotaxi access by the end of last year did not come true.
Wall Street's consensus estimate for the quarter had been around 461,974 deliveries, meaning the actual results exceeded expectations. In the prior quarter, Tesla had reported a 25 percent year-over-year sales increase.
The report arrives amid a mix of news for the company — positive developments include the relaunch of the Semi and Cybercab, a sales rebound in Europe, and growing US market share, while setbacks include a delayed reveal of the next-generation Roadster and a federal investigation into the Cybercab's launch.
