Tesla sales jumped from July to September, breaking a string of quarterly declines, as U.S. car buyers raced to collect federal tax credits of up to $7,500 before the incentives expired at the end of last month.
But other automakers, including Ford, General Motors and Hyundai, reported much sharper jumps in U.S. electric vehicle sales during the third quarter.
Analysts and industry executives expect sales of electric vehicles to slump in coming months because Congress ended the tax credits and other incentives.
Tesla said it delivered 497,000 vehicles worldwide in the third quarter, up 7 percent from 463,000 a year earlier. Elon Musk, the company’s chief executive, has increasingly downplayed the importance to the company of selling cars, betting instead on self-driving taxis and humanoid robots that are still being developed and do not generate significant revenue.
In July, President Trump signed a law passed by Republicans in Congress that did away with a tax credit of up to $7,500 available to people who buy or lease electric vehicles. The credit ended on Sept. 30.
The impending demise of the credits prompted sales of electric vehicles in the United States to surge 22 percent in the third quarter from a year earlier, to 410,000 vehicles, according to estimates by Cox Automotive. Electric vehicles accounted for 10 percent of the new car market, a record.
Tesla does not publish the number of cars it sold by country or region, unlike other automakers, which makes it hard to compare its performance to the rest of the industry. Analysts will eventually publish estimates of the company’s sales in the United States and other markets, but not right away.
Electric vehicles were the fastest-growing category for several major carmakers in the last quarter. Ford Motor said on Monday that sales of electric vehicles like the Mustang Mach-E rose 30 percent in the United States, compared to an 8 percent increase for all vehicles.
General Motors said Tuesday that sales of its electric vehicles like the Chevrolet Equinox EV more than doubled, while overall sales rose 8 percent. Hyundai said its electric vehicles sales doubled while overall retail sales in the United States rose 11 percent. Volkswagen of America said sales of its electric vehicles more than tripled, while total sales fell 6 percent.
Analysts expect electric vehicle sales to flag in coming months, then recover gradually as the technology improves and prices fall closer to cars that run on gasoline.
Some carmakers are already lowering electric vehicle prices. Hyundai said Monday that it would continue to offer $7,500 incentives on 2025 models in October, and cut the suggested retail prices for its 2026 Ioniq 5 models by as much as $9,800.
Jim Farley, the chief executive of Ford, said he was optimistic about the long-term prospects for electric vehicles. “Because when people buy them they don’t trade out,” he said in an interview this week. “That’s what I watch. The loyalty. The loyalty of E.V. buyers is super high.”
Several versions of Tesla’s Model 3 sedan, Model Y sport utility vehicle and Cybertruck qualified for the credits. But any benefit for Tesla sales in the United States was partly offset by big declines in Europe, where Mr. Musk’s outspoken support for right-wing politicians has alienated many car buyers.
Registrations of new Teslas in the European Union slumped 43 percent in the first eight months of the year from the same period in 2024 even as overall sales of electric vehicles rose 25 percent, according to the European Automobile Manufacturers’ Association.
Tesla’s weak sales also reflect intense competition. Chinese carmakers like BYD are pushing into Europe and taking customers who may have previously bought a Tesla. Volkswagen, Renault, BMW and other European automakers are offering electric vehicles that often sell for much less than Teslas. Some offer newer technology, such as a digital display in some BMWs that is embedded in the windshield.
Tesla’s newest vehicle, the Cybertruck, has sold poorly. And an upgraded Model Y, the company’s best-selling vehicle, has failed to stem the collapse in sales. The company has promised to begin producing a less expensive car by the end of the year, but has yet to show that vehicle.
Tesla has also struggled to compete in China, where dozens of automakers are slashing prices in a fierce battle for customers. But Tesla sales picked up in September, according to Chinese state media reports.
Tesla delivered more than 66,251 vehicles over the month, based on insurance registrations. The company had particular success with the Model Y L, a six-seat version of the Model Y. Incentives also helped, like five-year interest-free loans and around $1,200 in insurance subsidies.
But Tesla’s improved performance also reflects strong sales across the industry, as government subsidies, aggressive pricing and a surge of cheap models fuel consumer demand, according to Bill Russo, a Shanghai-based electric car industry expert.
“Tesla is ending the third quarter on a strong note,” said Mr. Russo, a former Chrysler executive. “But the broader story remains the overwhelming scale and momentum of Chinese automakers.”
The terms of Mr. Musk’s proposed trillion-dollar pay package, announced last month, set ambitious goals for profit, deployment of robots and self-driving taxis, and for the stock price. But the targets for car sales are relatively modest — an average of 1.2 million cars a year through 2035. That is far fewer than the 1.8 million vehicles the company sold last year.
Robyn Denholm, the chair of Tesla’s board, said that the company has not given up on the car business. “There is still a lot of ambition in the vehicle space,” she said in an interview last month.
Alexandra Stevenson and Joy Dong contributed reporting.
Jack Ewing covers the auto industry for The Times, with an emphasis on electric vehicles.
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