On October 2, Tesla officially released its third-quarter delivery data. According to the report, Tesla delivered 497,000 vehicles globally in the third quarter, a 7.4% year-on-year increase, far exceeding market expectations of 439,600 vehicles. In comparison, Tesla delivered 456,000 vehicles in the second quarter, an increase of around 40,000 vehicles from the previous quarter. Among the deliveries, 481,000 units were of the Model 3 and Model Y, while other models accounted for 16,000 units.
Market analysis suggests that Tesla’s third-quarter performance was affected by the ongoing sales decline in the European market. However, the slowdown in Europe was partially offset by strong sales in the U.S., where consumers rushed to purchase electric vehicles before the expiration of the U.S. federal tax credit program.
Previously, under policies introduced during the administration of former U.S. President Joe Biden, consumers could receive up to $7,500 in tax credits for purchasing new electric vehicles and up to $4,000 for used electric vehicles. However, in July of this year, U.S. President Donald Trump signed the “Big and Beautiful” tax and spending bill, which stipulated that the U.S. federal government would no longer provide tax credits for electric vehicles starting September 30.
With the expiration of the U.S. federal electric vehicle subsidy, Tesla’s performance in the third quarter may be difficult to replicate. Before the subsidy ended, many consumers rushed to purchase vehicles in the third quarter to take advantage of the incentives, leading to a temporary boost in sales. However, in the following months, sales may sharply decline. Karl Brauer, executive analyst at iSeeCars.com, expects that after the subsidies end, the U.S. market share could immediately drop below 4% and may stabilize around 4% by early 2026, presenting a significant challenge for Tesla’s strategy and sales growth in the U.S.
Turning to the Chinese market, according to Tesla’s global production and delivery report, sales in China reached 71,000 units in September, with total third-quarter sales of 169,000 units. In the third quarter, Tesla China focused on high-end SUVs and range optimization.
On August 19, Tesla launched the Model Y L, priced at 339,000 yuan. The Model Y L is a three-row, six-seat vehicle, with a larger size compared to the current five-seat Model Y. It is not just an extended version but has been designed specifically for the Chinese market with improved comfort. The new model is equipped with an 82 kWh LG ternary lithium battery, offering a CLTC range of 751 kilometers. In addition, on August 12, Tesla launched the Model 3 Long Range Rear-Wheel Drive, the most extended-range model of Tesla, with a CLTC range of 830 kilometers and a 0-100 km/h acceleration time of 5.2 seconds. On September 1, the price was reduced by 10,000 yuan, from 269,500 yuan to 259,500 yuan.
To further boost sales, Tesla China introduced a new car purchase policy on October 1, offering “limited-time benefits” for the entire Model Y and Model 3 series. The policy is valid until October 31. Specific discounts include “5 years 0% interest” for Model Y and Model 3 (with the Model Y L having “3 years 0% interest”); 8,000 yuan in paint option subsidies, 1,299 yuan for exclusive charging privileges; Model 3 specific versions can combine an 8,000 yuan insurance subsidy; and “limited-time free transfer of intelligent assisted driving,” allowing used car owners to retain functionality. These practical discounts lower the cost for consumers and stimulate demand, significantly driving sales growth.
In addition to the U.S. and Chinese markets, the European market has always been a key region for Tesla’s expansion. In the third quarter, the Model Y/3 ranked among the top three best-selling electric vehicles in Europe, and Tesla was the best-selling electric vehicle brand in Europe in September. From a sales structure perspective, the Model Y and Model 3 are the main models and are highly favored by local consumers. Europe’s high acceptance of new energy vehicles and strong environmental awareness, combined with Tesla’s continuous optimization of its sales and after-sales service network, has steadily increased its market share. The European market has great potential and is expected to become a new growth point for Tesla’s sales in the future.
