Tesla posted an unexpected jump in third-quarter sales, snapping a two-quarter slump that had raised questions about the electric carmaker’s momentum. A last-minute rush by US buyers to lock in a $7,500 federal EV credit before its September 30 expiry appears to have powered the rebound.
The company reported on Thursday that sales rose 7 per cent year-on-year in the July–September period, a sharp contrast to earlier in 2024 when customers turned away over Elon Musk’s outspoken political views. Some buyers even staged protests at Tesla dealerships in the US and Europe, as per foreign media reports.
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Numbers beat forecasts
Tesla delivered 497,099 vehicles in the quarter, compared with 462,890 in the same period last year. According to a foreign media report, market watchers had expected sales to fall to around 456,000 despite the boost from incentives. Shares climbed nearly 2 per cent in early Thursday trading to $468.52.
The 7 per cent gain marks a break from a 13 per cent plunge in the first quarter and another 13 per cent decline in the second quarter. Musk’s alignment with President Donald Trump’s government cost-cutting drive earlier this year, along with political controversies abroad, had rattled Tesla’s image. In Europe, sales slid 40 per cent across more than 20 countries after Musk voiced support for far-right leaders.
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Investors betting on what’s next
Despite the turbulence, Tesla stock has rallied 34 per cent in September alone. Investors are betting that a cheaper version of the bestselling Model Y, promised by Musk earlier this year, will soon hit the market. The launch is now expected either before year-end or in early 2025.
Wall Street enthusiasm also stems from Tesla’s expanding vision beyond car sales. Musk has highlighted the upcoming driverless robotaxi service in select cities and unveiled “Optimus” humanoid robots, pitched as tools for factory work and even household chores.
Tesla will release its third-quarter earnings later this month. In the April–June period, profits dropped 16 per cent as competition from Chinese giant BYD and European EV manufacturers ate into its global market share.
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