Tesla posts stronger-than-expected quarterly deliveries

Tesla exceeded Wall Street predictions for deliveries in the third quarter, delivering 486,532 vehicles, surpassing the analysts' average estimate of 456,896 vehicles, according to Visible Alpha data. The strong performance came as Europe's sales rebounded, partially compensating for reduced demand in Tesla's two biggest markets, the US and China.

Analysts warned that the company would need to deliver at least 311,448 vehicles in the fourth quarter to avoid a third consecutive annual decline. Demand appeared robust leading into the quarter, with Tesla having the largest order backlog since 2023, as reported by finance chief Vaibhav Taneja in July. In Europe, the Model Y became the top-selling car type for the first time, driven by a two-thirds rise in registrations through August following backlash against CEO Elon Musk's politics.

Shanghai's exports nearly doubled in July and August. Despite the positive outlook, analysts anticipate that the rollout of Tesla's Full Self-Driving software in Europe will further boost sales, as the feature is now approved in eight countries. However, investors have increasingly shifted their focus towards Tesla's AI, self-driving cars, humanoid robots, and energy initiatives, rather than quarterly deliveries.

Tesla's robotaxi service now operates without a safety supervisor in Texas and Florida, with the Cybercab added to the robotaxi fleet in Austin. In September, the company reported producing 464,391 vehicles, which was below analysts' estimates of 486,761 vehicles.