Tesla Achieves Record Sales Following End of U.S. Electric Vehicle Subsidy

After a prolonged period of declining sales, Tesla has reported a significant rebound, coinciding with the conclusion of the U.S. electric vehicle subsidy program. In the last quarter, the company saw a remarkable increase in vehicle deliveries, with a 7.4 percent rise compared to the previous year, totaling 497,099 vehicles.

This turnaround comes as a surprise to analysts, who had anticipated a decline of approximately five percent. Earlier in the year, Tesla had experienced a downward trend, with deliveries dropping by about 13 percent in both the first and second quarters.

Market experts had predicted that the impending expiration of the $7,500 tax credit at the end of September would lead some U.S. consumers to make purchases before the deadline. However, many believed this would still result in an overall decline in sales. The implications of these preemptive purchases on Tesla's sales for the current quarter and beyond remain to be seen.

CEO Elon Musk has previously expressed concern about facing challenging quarters ahead. He has downplayed the significance of vehicle sales for Tesla's future, suggesting that the company's direction will shift towards innovations in robot taxis and humanoid robots. Nevertheless, these ventures are still in their infancy and face considerable competition.

In the last quarter, Tesla manufactured approximately 447,410 vehicles across all models, marking a 4.8 percent decrease from the previous year. Factors contributing to the earlier sales decline included a transition period for the popular Model Y and various controversies surrounding Musk's political engagements.

Despite a stable production of the Model Y in the second quarter, sales did not improve significantly. Furthermore, Tesla is encountering escalating competition in the electric vehicle market, as various manufacturers are expanding their electric offerings. Concurrently, many consumers in the U.S. are opting for hybrid vehicles or traditional combustion engines.

While U.S. automakers are scaling back their electric vehicle plans, particularly for large pickups, Tesla's futuristic Cybertruck has not met initial sales expectations.

In stark contrast to its performance in the U.S., Tesla's sales in Europe continue to decline sharply. In August, new registrations in the European Union plunged by 36.6 percent year-over-year, with July seeing a decline of over 42 percent. Tesla's market share in the EU has diminished to just 1.2 percent.

According to Bloomberg, Musk took direct control over production and sales in Europe during the summer after the departure of his long-time associate, Omead Afshar. While Tesla operates a factory in Grünheide, near Berlin, the company has not disclosed specific sales figures for individual regions.