Fuelled by last-minute tax credit buyers, Tesla smashed delivery records worldwide with nearly half a million cars, yet faces slowing growth, European struggles, and fresh investor scrutiny.
Tesla has reportedly seen its best-ever quarter for vehicle deliveries, fuelled by a rush of US buyers taking advantage of a federal tax credit that expired on 30 September. The company delivered 497,099 vehicles worldwide in the third quarter of 2025, a 7.4% rise from last year and well ahead of Wall Street forecasts of 439,600 units.
However, despite the milestone, Tesla’s shares fell as much as 3.2% in New York trading on Thursday. This followed a sharp 33% stock surge in September, which lifted its market capitalisation by nearly $402 billion.
The rush before the tax incentive deadline offered a boost to Tesla’s core car business. The company has recently faced headwinds from ageing models, rising competition, and political controversy surrounding chief executive Elon Musk’s close alignment with former US President Donald Trump.
Deliveries were led by the Model 3 sedan and Model Y crossover, which accounted for 481,166 units. Analysts noted the company’s aggressive use of discounts, financing deals, and leasing offers.
Specifically, in China, Tesla started shipping its new six-seat, long-wheelbase Model Y L in September, aimed at family buyers in the world’s largest EV market.
However, Europe remained a weak point. Sales in the region, including the UK, fell 22.5% year-on-year, reducing Tesla’s market share to 1.5%. Chinese EV makers and plug-in hybrids gained ground, according to the European Automobile Manufacturers’ Association.
Looking forward, analysts warn of slower momentum in the fourth quarter. Forecasts point to 1.61 million deliveries for 2025, about 10% below 2024 levels, meaning Tesla must ship almost 390,000 vehicles in the final quarter.
Beyond cars, Tesla is testing new revenue streams. It launched a supervised robotaxi pilot in Austin, US, in June and has proposed a new CEO compensation plan for Musk, potentially worth $1 trillion, subject to a shareholder vote.
