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Tesla Shatters Delivery Records as Tax Credit Expires
2 Oct
Summary
- Tesla reports record Q3 deliveries of 497,099 units
- Expiration of $7,500 US EV tax credit likely boosted sales
- Tesla faces issues in Europe due to competition and Musk's politics
As of October 2nd, 2025, Tesla has reported record-breaking third-quarter global deliveries, easily surpassing industry expectations. The electric vehicle (EV) maker delivered 497,099 vehicles in Q3, a new quarterly high for the company and a significant increase from the 462,890 units delivered a year ago.
The strong performance is likely attributed to the expiration of the $7,500 federal EV tax credit in the US, which may have juiced sales in the final months before the incentive was phased out. However, Tesla has faced persistent issues in the European market, where new competition and CEO Elon Musk's right-wing political views have likely alienated some buyers. According to the European Automobile Manufacturers' Association (ACEA), Tesla's EV registrations in Europe fell by 22.5% in August compared to the previous year, even as overall EV registrations in the region rose by 26.8%.
Looking ahead, the big question is how Tesla's sales will fare in a post-tax credit environment. Ford CEO Jim Farley has warned that EV sales could drop by as much as 50% after the credit expires, and Musk himself has cautioned that Tesla is in for a "few rough quarters" as the company delays the launch of its cheaper models until the tax credits are gone.
