TESLA’S CAR BUSINESS BACK ON GROWTH PATH AS DELIVERIES BEAT FORECASTS

By the Editorial Team · Saturday, October 3, 2026

Tesla delivered 486,532 vehicles in the third quarter, surpassing analyst predictions and reversing two years of declining sales, largely due to a strong rebound in its European market. This turnaround has boosted forecasts for 2026 deliveries and helped lift Tesla’s stock, highlighting the continued importance of vehicle sales to its valuation despite ongoing investments in AI and robotics.

Tesla Inc. is poised to reverse two consecutive years of declining vehicle sales after reporting third-quarter deliveries that exceeded analyst expectations, driven in part by a strong recovery in the European market. The Austin, Texas-based electric vehicle manufacturer delivered 486,532 vehicles between July and September, surpassing the average analyst estimate of 456,896, according to data from Visible Alpha.

The better-than-expected quarterly performance helped lift Tesla’s shares by more than 5% in early trading, following a year-to-date decline of approximately 20%. Despite Tesla’s growing focus on ventures in artificial intelligence, robotaxi fleets, and humanoid robotics, its vehicle sales continue to represent the bulk of its revenue and remain critical to its overall valuation, which stands near US$1.4 trillion.

Analysts noted the potential for continued sales growth throughout 2026, with full-year delivery forecasts recently revised upward to an estimated 1.82 million vehicles from 1.65 million as of June. Tesla will need to deliver approximately 311,448 more vehicles during the remaining quarters to surpass last year’s total, a target that analysts consider achievable based on recent momentum.

The company’s U.S. sales were expected to decline from record levels seen in the same quarter last year, largely due to the expiration of a US$7,500 federal tax credit for electric vehicle buyers at the end of September 2025. Nevertheless, Tesla maintained strong demand, with Chief Financial Officer Vaibhav Taneja reporting in July that the company finished the second quarter with its largest order backlog since 2023.

Tesla’s European business showed significant signs of recovery after a slump in 2025. The downturn had been influenced by controversy surrounding CEO Elon Musk and increased competition from lower-cost Chinese automakers. However, registrations for Tesla vehicles in the European Union climbed by about two-thirds during the January-to-August period compared to the previous year, according to data from the European Automobile Manufacturers’ Association.

Meanwhile, Rivian Automotive Inc., a smaller competitor, also reported third-quarter deliveries ahead of estimates and reaffirmed its full-year delivery guidance, signaling sustained demand across the electric vehicle sector.

Tesla is scheduled to release its official quarterly earnings report on October 21, after markets close, providing further insights into its financial performance and future outlook.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.