Tesla Q3 deliveries slip but beat estimates as Rivian sets record and Ford holds off Hyundai

The delivery total beat the roughly 461,100 deliveries analysts expected, according to StreetAccount consensus cited by CNBC. Tesla's own company-compiled consensus, published Tuesday, was for 461,974 deliveries. Deliveries rose from 480,126 in the second quarter. The Model 3 sedan and Model Y SUV accounted for 98% of deliveries, Tesla said. Production included 457,387 Model 3 and Model Y vehicles and 7,004 "other vehicles" such as the Cybertruck, Cybercab and Tesla Semi, The Verge reported. Tesla discontinued the Model S and X earlier this year.

Tesla's sales decline was widely expected because the $7,500 federal tax credit for electric vehicles expired on Sept. 30, 2025. The Inflation Reduction Act, signed in 2022, had made the credit available through 2032, but President Donald Trump's spending bill curtailed it ahead of schedule. The prior-year third quarter was Tesla's record delivery quarter, as buyers rushed to use the credit before it ended. Elon Musk has said Tesla was in for "a few rough quarters" because of the expiring incentive and other macroeconomic factors, according to The Verge.

The report comes as Tesla tries to recover from consecutive annual sales declines. Before Friday's numbers, Tesla's U.S. sales were down nearly 20% year-over-year, according to Cox Automotive. TechCrunch reported that the drop stemmed from several factors, including the lack of new consumer models except the Cybertruck, which has been a commercial flop, and a consumer backlash over Musk's support for Trump's presidential campaign and his role overseeing the Department of Government Efficiency, which laid off thousands of workers and canceled international aid funding.

Tesla has leaned on other markets. Sales are rising again in Europe, where tighter emissions regulations support EV adoption, and Tesla is reportedly expanding capacity at its German factory. Its China factory has continued strong sales despite regional competition, with some output directed to newer markets such as Japan, Australia and Lithuania, according to TechCrunch. Tesla also faces competition from Chinese EV makers such as BYD and Xiaomi, which sell more affordable and innovative models, CNBC reported.

Investors sent Tesla shares up about 2% after the report. The stock was still down 21% this year as of Tuesday's close, underperforming other mega-cap technology peers, according to CNBC. Morgan Stanley analysts wrote Wednesday that the third quarter would be a tough comparison to a year ago and the prior period, noting last year's third quarter was Tesla's record delivery quarter and that second-quarter deliveries exceeded production by roughly 28,000 vehicles.

Tesla also said it deployed 13.7 GWh of energy storage products, including Megapack and Megablock systems, in the quarter. That compared with 12.5 GWh a year earlier and 13.5 GWh in the second quarter. The company will report third-quarter earnings on Oct. 21 after the market close.

Beyond cars, Tesla launched the production version of its electric Semi and aims to make roughly 50,000 Semi vehicles per year, TechCrunch reported. It has started giving autonomous rides in the two-seat Cybercab in Austin, Texas, despite the vehicle having no driver, steering wheel or pedals. The second-generation Roadster is set to be re-revealed on Oct. 15 after years of delays, though it is unclear when it will be built. Tesla is also developing the Optimus humanoid robot but has repeatedly pushed back its timeline. Earlier this week, Tesla announced it had secured up to $30 billion in new lines of credit to support these projects. The Verge reported a federal investigation into the Cybercab launch.

Rivian, meanwhile, set a quarterly sales record. The company said Friday it built 19,751 vehicles and delivered 19,248 in the third quarter, about 45% more than in the same period last year. It was the first full quarter of sales for the R2 SUV after its June launch. Rivian did not break out how many deliveries were R2s, but the vehicle starts just under $60,000. Rivian expects to sell 20,000 to 25,000 R2 vehicles by the end of the year, which would make it one of the fastest-selling EVs in U.S. history behind Tesla's Model Y. It also plans cheaper versions starting around $45,000. If those targets are met, Rivian believes it can sell 65,000 to 70,000 vehicles this year, including its R1 lineup and commercial electric van, which would be its best sales year ever after several years stuck around 50,000 vehicles.

Rivian builds the R2 at its factory in Normal, Illinois, where it recently expanded production space. It is also building a new factory outside Atlanta, Georgia, with expected capacity of up to 300,000 vehicles per year in the near future. Rivian has signed a deal with Uber to make robotaxi versions of the R2, and in March it pushed back its goal of reaching profitability in 2027 to invest more in autonomy. It will release full third-quarter financial results on Oct. 29.

In Detroit, Ford Motor retained its No. 3 U.S. sales position during the third quarter by a narrow margin over Hyundai Motor, which had been forecast to overtake the Detroit automaker. Ford reported a 6.6% year-over-year sales decline to 507,395 light-duty vehicles, excluding its largest heavy-duty trucks, which are classified differently. Hyundai, including the Hyundai, Kia and Genesis brands, reported a 5.4% increase to 506,200 vehicles. Both companies performed better than expected, but a forecast last week by Cox Automotive had called for Hyundai to overtake Ford in quarterly sales for the first time. Hyundai has been making major inroads in the U.S. this year, while Ford has struggled with production of its crucial F-Series pickup trucks after two supplier fires last year disrupted production and sales.

Editor's Summary

Tesla's third-quarter deliveries fell 2.1% from a year earlier but beat analyst estimates, as the expiration of the U.S. EV tax credit made for a tough comparison and competition increased. Rivian set a quarterly sales record with the R2's first full quarter, and Ford narrowly held off Hyundai to remain No. 3 in U.S. sales. Tesla also continued to invest in autonomy and other projects while facing a U.S. sales decline and a stock that is down sharply this year.