(MENAFN) Tesla, the US electric vehicle (EV) manufacturer, announced Thursday that it delivered 497,099 vehicles in the third quarter of this year, marking a 7% increase compared to the same period last year. This performance surpassed market forecasts and helped offset a 4.7% decline in vehicle production, which fell to 447,450 units from last year’s third-quarter output.

While Tesla does not disclose sales or production data by model or region, it confirmed producing 435,826 units of its top-selling Model 3 and Model Y vehicles. Although Tesla’s shareholder statements differentiate deliveries from sales, deliveries remain the most accurate gauge of actual sales volume.

Tesla’s Q3 results faced headwinds from ongoing sales declines in Europe. This downturn is attributed partly to backlash against CEO Elon Musk’s polarizing political statements and actions, coupled with stiffening competition from European EV makers like Volkswagen and BYD, which are steadily capturing market share.

Conversely, US demand surged sharply, buoyed by the expiration of a federal EV tax credit under President Donald Trump’s July budget bill. This policy shift led many American buyers to expedite their purchases ahead of the incentive’s expiration.

Following a sluggish start to 2025, Tesla’s stock bounced back strongly in Q3, climbing 40% and turning positive for the year. As of early October, the stock is up 14% year-to-date.

This rebound contrasts with Q2 results, when Tesla delivered 384,122 vehicles—a 14% year-over-year drop and the company’s second consecutive quarterly delivery decline.

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