Tesla reports record sales increase as EV subsidies expire
Tesla reported a record 7% increase in vehicle sales for the third quarter, delivering 497,099 cars globally, surpassing both last yearS figure of 462,890 and analysts’ expectations of 456,000. This surge came despite the expiration of the $7,500 federal tax credit for new electric vehicles (EVs) on September 30, which likely motivated customers to purchase EVs before the subsidy ended. Tesla’s performance aligns with other automakers like General Motors and Ford, which also saw an 8% sales increase fueled by strong EV sales.
Despite earlier financial difficulties linked to CEO Elon Musk’s brief involvement in the White House and association with former President Donald Trump-factors that lead to protests and vandalism-Tesla’s sales growth suggests Musk’s renewed focus on the business is paying off. Though, with the repeal of EV tax credits through the One Big Beautiful Bill Act, EV sales are expected to decline by 25% to 30% in upcoming quarters.
Looking ahead, Tesla plans to continue innovation with products like autonomous vehicles, including the upcoming Tesla Cybercab robotaxi modeled after the Cybertruck, and humanoid robots. additionally, Musk’s proposed $1 trillion pay package, designed to motivate him for Tesla’s next decade of growth, is scheduled for a shareholder vote in November.
Tesla reports record sales increase for third quarter as EV subsidies expire
Tesla beat a new record with a 7% sales increase in the third quarter, the automaker reported on Thursday after the $7,500 tax credit for new electric vehicles expired on Sept. 30.
The quarterly sales results were likely affected by customers who wanted to buy EVs ahead of the expiration date for the federal subsidies.
The final tally was 497,099 global vehicle deliveries, compared to 462,890 the same time last year. The new figure beat analysts’ projections of 456,000 deliveries. The last record was set in the fourth quarter of 2024, when 495,570 Teslas were delivered.
The sales figures put Tesla on pace with other automakers. General Motors and Ford said on Wednesday that their sales increased by 8% in the third quarter after record numbers of EVs were sold.
The news comes as Tesla CEO Elon Musk became the first person whose net worth hit $500 billion this week, indicating his EV company is performing well despite financial troubles earlier this year.
The previous two quarters were characterized by steep declines, fueled by Musk’s brief time in the White House and his association with President Donald Trump. The billionaire’s right-wing views prompted a number of protesters to vandalize Tesla cars and dealerships.
Musk ultimately cut ties with the Trump administration to focus on his businesses, including Tesla. It appears his strategy is working so far, although the automaker’s increased sales may not last very long.
Because the One Big Beautiful Bill Act repealed the tax credits on Tuesday, EV sales are expected to drop in the next few quarters. The Congressional Research Service estimates a 25% to 30% decline.
ELECTRIC VEHICLE SALES SURGE AS BUYERS TRY TO GET AHEAD OF SUBSIDY EXPIRATION TUESDAY
Despite the negative outlook, Tesla is proceeding with its plans to roll out autonomous vehicles and humanoid robots as part of a new lineup of products. Among them is the Tesla Cybercab, a fully autonomous robotaxi with a similar design to the Cybertruck.
Meanwhile, Musk’s $1 trillion pay package, proposed by Tesla’s board, is up for a shareholder vote in November. The historic pay package is said to keep Musk focused through the company’s next decade of growth.
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