Tesla breaks sales record but European slump persists
Tesla delivered nearly half a million vehicles in the third quarter, a record for the electric carmaker, even as it continued to lose ground in Europe to Chinese and European rivals.
Elon Musk’s car giant exported 497,099 vehicles between July and September 2025, up 29 per cent on the previous quarter and seven per cent year-on-year.
It was the first time since 2024 that Tesla posted annual growth, driven by a rush of American buyers seeking to secure a $7,500 (£5,583) federal tax credit before it expired on 30 September.
Tesla also deployed a record 12.5 gigawatt hours of energy storage during the period, strengthening its push to diversify beyond vehicles.
Shares rose more than three per cent in pre-market trading following the update.
Patchy European gains for Tesla
Despite the record, Tesla’s European outlook remains weak.
Registration data this week showed sales increased in France, Denmark, Norway and Spain in September, helped by its refreshed Model Y.
The SUV was the best-selling vehicle in Denmark.
But registrations in Sweden fell 64 per cent, marking a ninth straight monthly decline.
Across the EU, Tesla’s sales for January to August were down 43 per cent year-on-year.
Analysts point to a limited model line-up, rising competition and consumer backlash against chief executive Elon Musk, who has publicly supported Donald Trump and European far-right parties.
“Tesla may still be a big fish, but the pond is now full of serious competitors”, said Andy Palmer, chair of Electric Vehicles UK. “Unless it refreshes its range, it will keep losing market share.”
Elsewhere, Chinese rival BYD outsold Tesla in the EU in August for the second time this year, though Tesla retained a Europe-wide lead.
Momentum questioned
However, analysts have questioned whether Tesla’s strong third-quarter figures will last.
Matt Britzman, senior analyst at Hargreaves Lansdown, said: “A key driver was the rush of buyers looking to lock in US EV tax credits.
“The challenge now is dealing with the slowdown that follows – and that’s where a new, affordable model becomes crucial.”
Britzman added that Tesla’s energy storage business was “a standout” but warned that investor enthusiasm still hinges as much on Musk’s AI ventures and progress on self-driving tech as on fundamentals.
Meanwhile, Musk’s personal wealth has climbed to $500bn, making him the first individual to hit the milestone, according to Forbes.
Tesla shares have risen 14 per cent this year, fuelled by optimism over xAI, Musk’s AI startup, which is expected to seek a valuation of $200bn.
Last month, City PM reported that sales at the UK arm of Tesla slumped by more than £500m as its profit was also slashed during its latest financial year.
The division, which is headquartered in Manchester, reported a revenue of £1.94bn for 2024, new accounts filed with Companies House show.
The new figure comes after Tesla posted a revenue of £2.47bn for 2023.
The results have also confirmed that the company’s pre-tax profit also fell from £32m to £19.4m over the same period.