Tesla reported record 497,099 vehicle deliveries for the third quarter of 2025, marking a 7.4 percent increase from the same period last year. The surge, however, was largely driven by consumers rushing to take advantage of the $7,500 U.S. federal EV tax credit before its expiration.
Tesla will post its financial results for the third quarter of 2025 after market close on Wednesday, October 22, 2025.
Record Deliveries Driven by Incentives
Of the total deliveries, 481,166 were Model 3 sedans and Tesla Model Y crossovers, with strong demand in China helping offset weakness in Europe. Tesla began shipping the six-seat Model Y L in China in September, a family-focused variant aimed at boosting demand in the world’s largest EV market.
While sales surged, analysts cautioned that the growth was driven more by “pulled-forward demand” than genuine organic expansion, Reuters news report said. With the expiration of the tax credit, Tesla has already raised lease prices on its vehicles, although sticker prices excluding credits remain unchanged.
Tesla has produced 447,450 electric vehicles that include 435,826 Model 3/Y and 11,624 other models during the third-quarter of 2025.
Market Reactions
Despite the record numbers, Tesla shares fell 3.4 percent in afternoon trading on Thursday, as investors worried about a slowdown in the months ahead.
Regional Trends Highlight Mixed Fortunes
China: Sales remained strong, boosted by refreshed Model Y demand and the launch of new variants.
Europe: Deliveries dropped 22.5 percent year-over-year in August, cutting Tesla’s market share to just 1.5 percent amid aggressive competition from Chinese EV makers and European plug-in hybrids.
As of October 2025, Tesla has not publicly released a specific annual delivery target for the year. In July, CEO Elon Musk withdrew the company’s previous 2025 sales growth forecast, citing “evolving trade policies as main factor contributing to the decision.
Analysts have provided projections based on current performance trends. For instance, Visible Alpha estimates that Tesla’s full-year 2025 deliveries will be approximately 1.61 million vehicles, which is about 10% below the 1.79 million delivered in 2024.
Musk’s Mega Pay Package and Tesla’s Strategy
Tesla’s record deliveries come as CEO Elon Musk faces a proposed mega pay package worth up to $1 trillion, tied to delivering 20 million vehicles over the next decade and sustaining high company valuations. Musk’s net worth recently breached $500 billion, reinforcing his position as the world’s richest person.
Looking Ahead: Affordable Models Key to Growth
Tesla has delayed the rollout of a lower-cost Model Y variant in the U.S., now expected in late 2025, with plans to scale production in China and Europe. The new model, designed to be 20 percent cheaper to produce, could add up to 250,000 units annually in the U.S. by 2026. Analysts say this affordable EV will be critical to sustaining momentum once the tax credit boost wears off.
Baburajan Kizhakedath