Tesla's Record Deliveries Propel Stock Gains Amid Tax Credit Rush

Tesla's third-quarter performance has defied analysts' predictions, posting record deliveries of 497,099 vehicles, surpassing expectations of 443,919. This surge, predominantly from U.S. buyers rushing to capitalize on an expiring $7,500 federal tax credit, overshadowed declining European demand, where sales fell 22.5%.

In response to this demand fluctuation, Tesla shares increased by 3.1% in premarket trading. Tesla has utilized attractive financing and leasing options to stimulate U.S. sales, doubling down on the tax credit's influence. However, with the credit's expiry on September 30, future sales may experience a downturn.

Looking ahead, Tesla's projections include delivering a significant number of vehicles by year-end to maintain momentum. Meanwhile, in China, Tesla introduced the new long-wheelbase Model Y L to boost demand, and is testing supervised robotaxi services in Austin. Additionally, CEO Elon Musk might receive a new compensation package, worth potentially $1 trillion, contingent on meeting operational and market milestones.

(With inputs from agencies.)