Tesla reported third-quarter vehicle deliveries of 486,532, exceeding the average forecast of roughly 461,100 from analysts. Production for the July-to-September period totaled 464,391 vehicles, meaning the company delivered about 22,000 more cars than it built during the quarter by reducing existing inventory.

The delivery total marked a 1.3 percent increase from the 480,126 vehicles handed over in the second quarter. It represented a decline of approximately 2 percent from the more than 497,000 delivered in the same period a year earlier. That earlier quarter had been lifted by a surge in purchases ahead of the expiration of a $7,500 U.S. electric-vehicle tax credit on September 30, 2025.

Mass-Market Models Drive Results

Nearly all of the volume came from the Model 3 sedan and Model Y sport-utility vehicle. Those two models accounted for 478,237 deliveries, well above the 450,712 that Tesla’s survey of analysts had anticipated. Deliveries of the remaining lineup, which includes the Cybertruck, totaled 8,295 units. That figure fell short of the 11,285 expected and stood at roughly half the 15,933 recorded a year earlier.

European demand provided support. Vehicle registrations in the region rose by about two-thirds through August compared with the prior year. The gap between production and deliveries continued a pattern seen in the previous quarter, when Tesla built 451,758 vehicles and delivered 480,126.

Energy Storage Falls Short of Expectations

Tesla’s energy-storage business deployed 13.7 gigawatt-hours of capacity. The figure improved from 12.5 gigawatt-hours a year earlier yet remained below the 15.9 gigawatt-hours that analysts had projected.

The company noted that delivery and production numbers represent only two measures of performance. Profitability also depends on the average selling price of each vehicle, manufacturing costs, and currency movements. Those details will become available when Tesla releases its full third-quarter financial results after the market closes on October 21.

Shares Advance on the News

Tesla shares rose as much as about 6 percent following the release, trading near $373 to $374 in morning action. The stock had entered the session down roughly 21 percent for the year. Analysts covering the company remain divided: of 25 who issued 12-month price targets in the past three months, 12 rate the shares a buy, 11 a hold, and two a sell. The average target stands at $391.40.

Looking ahead, Tesla will need at least 311,448 deliveries in the fourth quarter to avoid a third consecutive annual decline in vehicle sales. Full financial results on October 21 will show whether the inventory reduction and post-tax-credit demand environment affected pricing and margins.