Tesla (TSLA) reported blowout third quarter global deliveries, as the expiration of the $7,500 federal tax credit in the US likely juiced sales.
Tesla said Q3 deliveries came in at 497,099, easily topping Bloomberg consensus estimates of around 439,800 and the 462,890 units delivered a year ago. Tesla said Q3’s total was a new quarterly record for the company.
Tesla stock opened up solidly but fell over 5% in Thursday trading. Competitor Rivian (RIVN) on Thursday issued a dour forecast that cast a spotlight on the EV industry’s gloom, as it looks to a world without the federal credit.
Read more: How to avoid the sticker shock on Tesla car insurance
Tesla also said global production came in at 447,450. The company deployed a record 12.5 gigawatt-hours of energy storage products.
Tesla’s huge Q3 follows similarly strong EV sales results from GM (GM), Ford (F), and Rivian. Buyers likely pulled foward EV sales after the Republican-led US government phased out the federal $7,500 EV tax credit.
The big question for the industry is how far sales will fall in a post-tax credit sales environment.
“While the numbers were better than expected, we think it is important to highlight the data is backward-looking,” CFRA analyst Garrett Nelson wrote in a note Thursday morning. “Looking ahead, we think there are still major questions regarding the earnings impact of legislative changes on the tradeable emissions credit market and EV demand in an unsubsidized U.S. market, particularly in light of TSLA’s lack of new vehicle models.”
Tesla CEO Elon Musk warned after Q2 earnings that Tesla was in for a “few rough quarters” as the company delayed the launch of its cheaper EVs until the federal EV tax credits expired in the US.
Tesla’s strong delivery numbers arrive against the backdrop of persistent issues in Europe, where new competition and Musk’s right-wing politics have likely alienated buyers.
Per the European Automobile Manufacturers’ Association (ACEA), Tesla EV registrations (a proxy for sales) in Europe fell to just 14,831 units in August, a 22.5% drop compared to a year ago. Meanwhile, total EV registrations in the region, which includes the UK and the European Free Trade Association (EFTA), rose 26.8% in August, with overall registrations regardless of powertrain up 4.7%.
Nevertheless, Tesla stock has been on a tear lately, with shares up over 30% in September. Today’s beat only adds to the gains for a company whose investors are betting on AI and robotics products, like the Cybercab, the company’s fledgling robotaxi service.
