Tesla shares rose 5% on Friday after the electric car maker reported third-quarter deliveries that beat analysts’ expectations.
The important numbers are:
Total vehicle deliveries in the third quarter: 486,532 units Total vehicle production in the third quarter: 464,391 units
Deliveries were down about 2% from 497,099 vehicles delivered in the same period last year, but up from the second quarter, when Tesla delivered 480,126 vehicles.
Analysts had expected deliveries to be around 461,100, according to Street Account consensus. Tesla’s internal consensus, announced Tuesday, was for deliveries to be 461,974.
Tesla does not release exact numbers for deliveries by individual model or region, but the company said its entry-level sedan, the Model 3, and its most popular SUV, the Model Y, account for the bulk of deliveries, or 98%.
Deliveries are the closest thing to Tesla’s reported sales, but they are not precisely defined in shareholder communications.
Elon Musk’s automaker is under pressure from increased competition from Chinese EV makers such as BYD and Xiaomi, which sell innovative electric vehicles at more affordable prices. Tesla is trying to recover from a year of declines in car sales, caused in part by consumer backlash against Mr. Musk, the world’s richest man, and the loss of U.S. federal tax credits.
The Anti-Inflation Act signed into law by President Joe Biden in 2022 would have allowed the EV tax cut to run through 2032, but President Donald Trump’s spending bill cut it ahead of schedule, with the tax cut set to end after September 30, 2025.
Tesla stock has fallen 21% since the beginning of the year as of Tuesday’s close, underperforming all of the tech giants.
Morgan Stanley analysts, who recommend holding the stock, said in a post-report note that Tesla could be “coming out of the EV winter.”
Analysts at RBC, which has an outperform rating, said in a note Friday that deliveries were “impressive.” They write that “rising fuel costs related to the Iran conflict and regulatory pressures could accelerate EV demand” in Europe, potentially benefiting Tesla and its Chinese competitors this year. The company also believes that Tesla’s energy business is “well-positioned to take advantage of” the “growth in power demand driven by AI.”
Tesla announced on Friday that it installed 13.7GWh of energy storage products during the quarter, including Megapack and Megablock systems. A year ago, Tesla deployed 12.5 GWh of such products, and last quarter that number was 13.5 GWh. Tesla does not clearly define “deployment” for its energy storage system in its shareholder communications.
Megapacks are used for business and utility-scale development, and Tesla’s new Megablock combines four Megapacks around one transformer. The system uses lithium-ion or other battery cells to avoid power outages in data centers and public facilities and enables energy storage from sources such as solar and wind.
Musk’s SpaceX is a big buyer of Tesla’s backup batteries and also spent $131 million on the Cybertruck pickup in 2025.
According to the International Energy Agency’s 2026 Global EV Outlook, demand for EVs is increasing around the world this year, although Tesla deliveries are down compared to a year ago. The IEA said the Iran conflict and soaring gasoline prices provided a catalyst to “confirm the case for EVs as a way to address energy security and fuel cost concerns.”
In 2020, EV and hybrid electric models accounted for less than 5% of global new car sales. According to the IEA, its share will reach one in four new cars sold in 2025.
If Tesla reaches at least 311,448 vehicles in the fourth quarter, annual deliveries will exceed 1.64 million vehicles, exceeding the number of vehicles delivered in 2025.
Tesla announced that it will release its third quarter financial results after the market closes on October 21st.
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