Tesla delivered nearly half a million vehicles in the third quarter, setting a record for the electric carmaker, even as it faced increased competition in Europe from Chinese and European manufacturers.
Elon Musk’s company exported 497,099 vehicles between July and September 2025, marking a 29% increase from the previous quarter and a 7% rise year-on-year. This was the first instance of annual growth since 2024, largely driven by American buyers rushing to secure a $7,500 (£5,583) federal tax credit before its expiration on 30 September.
Additionally, Tesla deployed a record 12.5 gigawatt hours of energy storage during this period, reinforcing its strategy to diversify beyond vehicle manufacturing. The company’s shares rose over 3% in pre-market trading following the announcement.
Despite these achievements, Tesla’s outlook in Europe remains uncertain. Recent registration data indicated sales growth in France, Denmark, Norway, and Spain in September, buoyed by the updated Model Y, which became the best-selling vehicle in Denmark. However, registrations in Sweden dropped by 64%, marking nine consecutive months of decline. Across the EU, Tesla’s sales from January to August decreased by 43% compared to the previous year.
Analysts attribute this downturn to Tesla’s limited model range, rising competition, and consumer backlash against CEO Elon Musk, who has publicly supported controversial political figures. Andy Palmer, chair of Electric Vehicles UK, commented, “Tesla may still be a big fish, but the pond is now full of serious competitors. Unless it refreshes its range, it will keep losing market share.”
Meanwhile, Chinese competitor BYD outsold Tesla in the EU in August for the second time this year, although Tesla maintained a Europe-wide lead.
Tesla has been similarly losing ground in the UK. The unit’s revenue fell to £1.94 billion in 2024 from £2.47 billion in 2023, according to new accounts filed with Companies House. The pre-tax profit also dropped from £32 million to £19.4 million over the same period.
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