Tesla delivered 462,890 vehicles in the third quarter, beating Wall Street's expectations and sending the electric-vehicle maker's stock sharply higher, though the total still came in below the same period a year ago.
Analysts surveyed by FactSet had expected roughly 463,000 deliveries, according to reports. Tesla's actual figure came in just above that mark, marking the company's strongest three-month stretch of 2024. The stock rose more than 5% in early trading following the release.
The result is a turnaround from the first half of the year, when Tesla posted its first annual delivery decline since 2020. The company delivered 386,810 vehicles in the first quarter, well below expectations, and followed with 443,956 in the second quarter. The third-quarter rebound suggests demand stabilized heading into the final months of the year.
Even with the beat, Tesla's third-quarter deliveries fell short of the 435,059 vehicles it delivered in the same quarter of 2023. That comparison matters because Tesla has spent much of this year cutting prices across its lineup to defend market share against a wave of cheaper competitors, particularly in China, where BYD and other domestic brands have gained ground.
The company has also leaned on incentives, including low-interest financing and free charging promotions, to move inventory. Those tactics have pressured profit margins, a concern that has weighed on the stock even as volume recovered. Tesla's automotive gross margin excluding regulatory credits stood at 14.6% in the second quarter, down from 18.1% a year earlier.
Tesla is scheduled to report full third-quarter financial results on Oct. 23. Investors will be watching whether the delivery beat translated into better profitability or came at the cost of further margin erosion.
The broader EV market has cooled from its pandemic-era growth rates. Ford and General Motors have both scaled back electric vehicle production targets this year, citing slower-than-expected consumer adoption. Tesla remains the dominant player in the U.S. EV market, holding roughly half of all electric vehicle sales, according to Cox Automotive data.
Tesla shares are down about 12% year to date, trailing the S&P 500's gain of roughly 20% over the same period, as investors weighed slowing growth against the company's long-term bets on autonomous driving and robotaxi services.
