Tesla posts quarterly delivery increase for the first time, but shares slump as investors hope for more

Low-interest financing, attractive leases, price cuts and free charging boosted Tesla’s global deliveries in the third quarter, the first increase this year for the electric vehicle maker.

The Austin, Texas-based company said Wednesday that it delivered 462,890 vehicles from July to September, supported by loans as low as 1.99% and monthly lease payments of $299 for the Model 3, its cheapest vehicle. In the same period last year, 435,059 vehicles were delivered.

According to data provider FactSet, the numbers for July to September were slightly above analyst estimates of 462,000 for that period.

However, shares of Tesla Inc. fell sharply in morning trading, losing nearly 4%.

The deliveries were “good and a step in the right direction,” wrote Wedbush’s Dan Ives, but that the company’s shares were under pressure as investors hoped for even better.

“Overall, this is a significant improvement over the first half of the year and we believe getting into the 1.8 million range this year is still the key and most important bugbear,” Ives said.

Tesla has struggled to sell its aging model lineup for most of the year as electric vehicle sales growth slowed in the U.S. and Europe due to concerns about range, price and the ability to charge while traveling.

Falling sales earlier this year led to once-unprecedented price discounts for the automaker, cutting into its industry-leading profit margins. Analysts estimated that Tesla’s average vehicle sales price in the third quarter was $42,500, its lowest price in four years.

The sales decline will likely have a negative impact on third-quarter earnings when they are announced on October 23.

Tesla’s decline in sales comes as competition increases from established and startup automakers trying to steal market share from the company.

Almost all of Tesla’s sales came from the smaller and cheaper Model 3 and Y, with the company only selling 22,915 of its more expensive models, including the X and S and the new Cybertruck.

Wedbush analyst Dan Ives wrote in a note to investors on Tuesday that “third-quarter sales would see a rebound as sales in China continue to rise and price and demand stabilize.” As China drives demand for Tesla with cheap leases “As “financing conditions and pent-up demand continue to heat up in the region, we are confident that we will see significant growth in the region,” he wrote.

Europe will continue to be slow given macroeconomic pressures and US demand should stabilize, Ives wrote.

But BNP Paribas Exane said in an investor note that long-term market expectations for Tesla were rather high. The company said its revenue estimates for 2026 and 2027 are “both 10% to 15% below norm.”

Tesla will unveil a purpose-built robotaxi at an event next week.