Tesla keeps its EV sales momentum despite US weakness

Tesla sold more than 480,000 EVs in the third quarter, as the company keeps finding ways to move new cars despite its troubles in the U.S. market. It was the second strong quarter in a row for Tesla after a somewhat rough start to the year. The sales figure easily beat consensus estimates from Wall Street and topped even the most optimistic view for the company, which made its 10 millionth vehicle earlier this year.

Tesla said Friday it built 464,391 vehicles in the quarter and delivered more than 486,532 — an increase of roughly 6,000 vehicle deliveries compared with the second quarter. But sales were still down from the same period last year, when Tesla delivered 497,000 vehicles, its best quarter ever, helped by a rush of U.S. buyers looking to take advantage of an expiring federal tax credit. Before Friday’s numbers were released, Tesla’s U.S. sales were down nearly 20% year-over-year, according to Cox Automotive.

That drop has been the result of several factors. Tesla has not released any new consumer models in years, with the exception of the Cybertruck, which has been a commercial flop. Potential buyers have also balked because of Elon Musk’s personal support for Donald Trump’s presidential campaign and his role overseeing the Department of Government Efficiency, which laid off thousands of workers and canceled international aid funding.

Tesla has looked to other markets to make up for lost U.S. sales. Its sales are rising again in Europe, where EVs are more widely adopted and supported by tighter emissions regulations, and the company is reportedly expanding capacity at its factory in Germany to meet that demand. Tesla has also seen continued strong sales out of its factory in China despite regional competition, with some of that driven by newer markets like Japan, Australia, and Lithuania.

Despite the overall rebound, sales have become something of a taboo subject for CEO Elon Musk, who is increasingly focused on the company’s other efforts — chief among them the Cybercab, which Tesla started putting on the roads of Austin, Texas in recent weeks, giving autonomous rides with no driver, steering wheel, or pedals. Tesla also recently launched the production version of its electric big rig, nearly a decade after it was first introduced, aiming to make roughly 50,000 Tesla Semi vehicles per year. Other efforts, including a re-revealed second-generation Roadster set for October 15 and the Optimus humanoid robot, don’t have firm commercial timelines. Earlier this week, Tesla announced it had secured up to $30 billion in new lines of credit to support these projects.

Why it matters

Tesla’s delivery rebound shows Musk can still move volume through Europe and China even as U.S. demand erodes — but the company is increasingly betting its growth story on unproven, capital-intensive projects like robotaxis and humanoid robots rather than new consumer cars.