New york: US electric vehicle (EV) manufacturer Tesla reported 497,099 vehicle deliveries in the third quarter of this year, marking a 7% increase compared to the same period last year. The company announced these figures on Thursday, revealing that the delivery numbers exceeded market expectations and assisted the firm in recovering from a 4.7% drop in vehicle production to 447,450 compared to the previous year's third-quarter results.

According to Anadolu Agency, Tesla does not break down sales or production figures by model or location, but it noted the production of 435,826 of its best-selling Model 3 and Model Y vehicles. Deliveries, while not directly equated with sales in Tesla's shareholder statements, are regarded as the most reliable indicator of actual sales.

Tesla's third-quarter performance was affected by a continued decline in sales in Europe. This decline was partly attributed to customer reactions against CEO Elon Musk's political commentary and actions, as well as rising competition from European EV manufacturers like Volkswagen and BYD, which are gaining market share.

Conversely, there was a significant increase in demand in the US, driven by the expiration of a federal EV tax credit as part of President Donald Trump's July budget bill. This policy change encouraged many American consumers to expedite their purchases before the incentives ended.

After a weak start to the year with the first three months of 2025, Tesla's stock showed a robust recovery in the third quarter, rising 40% and turning positive for the year. As of early October, the stock has increased by 14% year-to-date.

In the second quarter, Tesla recorded 384,122 deliveries, marking its second consecutive quarterly reduction and a 14% year-over-year decline.