Tesla Smashes Sales Forecasts as UK Tax Credit Deadline Drives Surge

Tesla has exceeded analysts’ expectations for third-quarter sales, capitalising on a rush of electric vehicle (EV) purchases in the United States prior to the withdrawal of a popular tax break. The company reported deliveries of 497099 vehicles for the July to September period, marking a 74 percent increase year on year and significantly surpassing analyst forecasts of 443919 units. This surge stemmed from consumers keen to secure the soon-to-expire tax credit worth up to 7500 dollars, which was brought to a close by a presidential order signed in July and took effect at the end of September.

The high demand prompted by the looming deadline saw Tesla offering favourable finance options and discounts to encourage buyers while leveraging the tax incentive to strengthen its leasing offering. Despite robust performance in the US market, concerns about Tesla’s fortunes in Europe persist. Data from the European Automobile Manufacturers’ Association revealed a 225 percent decline in Tesla’s European and UK sales over the same period, reducing its regional market share to just 15 percent. The manufacturer remains tightlipped about specific regional sales data, setting it apart from competitors, but the downward trend is clear.

Elon Musk, Tesla’s chief executive, has shifted focus away from purely vehicle sales, prioritising development of autonomous taxis and humanoid robots, both earmarked as future drivers of growth. Despite these ambitions, the company’s vehicle division remains crucial and, as recent figures illustrate, also volatile.

Tesla’s energy storage business, however, has flourished. Sales of large batteries climbed by more than 80 percent, reflecting increased uptake by utilities striving to balance the intermittent generation of renewable energy sources. This division is fast becoming an essential part of Tesla’s broader portfolio.

Share price volatility continues to be a hallmark of Tesla’s market presence. A dip of 1086 dollars or 23 percent, saw shares closing at 45031 dollars in New York on Thursday, yet the stock remains over 11 percent higher for the year to date. Musk’s more than 12 percent holding in the company, coupled with the year’s gains, propelled his net worth past 500 billion dollars, a figure subsequently dropping marginally to 498 billion dollars according to the Forbes billionaires index.

SpaceX, Musk’s rocket business, received a 400 billion dollar valuation in July following an internal share buyback. The entrepreneur’s artificial intelligence start-up, xAI, is reportedly aiming for a 200 billion dollar valuation amid ongoing fundraising talks, though Musk has denied any current intent to raise capital.