Tesla shares jump after global car sales top estimates

New York - Tesla's stock rose on Friday after the electric vehicle manufacturer reported global sales in the third quarter that exceeded expectations, despite a slight dip. The company sold 486,532 vehicles, a 2% decrease year-over-year, but still higher than most analysts anticipated. The dip was attributed to a surge in US electric vehicle sales the previous year due to the expiration of a tax credit at the end of 2025, which was removed under legislation backed by former President Donald Trump.

Shares of Tesla increased by 5.0% near midday. The figures released by Tesla were global and did not separate US sales; however, rising gasoline prices due to the Middle East crisis have spurred interest in electric vehicles. JPMorgan Chase had predicted 482,000 sales, based on data from Europe showing increased sales from the year-ago level, while projecting lower sales in China and the United States.

Ford, another automaker, reported a 6.6% drop in sales to 509,764 vehicles, highlighting factors like the planned phase-out of the Ford Escape and Lincoln Corsair, as well as a sharp decline in EV sales following the tax credit phase-out. Ford has also faced challenges due to a fire at a key metal supplier for its F-150 pickup truck, which remains the best-selling American truck for the 50th consecutive year.

Stellantis reported nearly identical third-quarter sales to the prior year, with a decline in Jeep sales offset by increases in Ram pickup trucks. Analysts view the US car market as resilient despite high inflation, as consumers continue to visit dealerships and purchase vehicles, often opting for lower-cost alternatives. Overall, third-quarter US sales are projected to decline by 0.7% from a year ago to 4.1 million units. Ford's stock dropped by 2.2%, while Stellantis fell by 6.6%.