Tesla's EV Sales Surge Amid Tax Credit Rush

Tesla's electric vehicle deliveries for the third quarter surpassed expectations on Thursday, driven primarily by a surge in U.S. consumer purchases ahead of the expiration of a lucrative tax credit. Despite strong domestic sales, the company continues to face challenges in Europe, where demand has waned.

The Austin, Texas-headquartered company saw its stock rise 3% in pre-market trading as investors reacted to the news. Tesla had been vocal about the impending September 30 cessation of the $7,500 federal tax credit, encouraging consumer purchases through financing deals and discounts.

In China, Tesla's introduction of the spacious Model Y L is anticipated to bolster sales in the leading EV market, while European sales have dipped significantly. Looking forward, full-year deliveries for 2025 are estimated to decrease by 10% from 2024. The company's innovative pilot for a supervised robotaxi service in Austin continues to draw attention and regulatory oversight.

(With inputs from agencies.)