Tesla's third-quarter deliveries just smashed expectations, climbing a solid 7% year-over-year to what the company calls its strongest showing yet in 2025. Indeed, the numbers rolled in hot on the heels of the federal EV tax credit's expiration, pulling in buyers desperate to snag that $7,500 incentive before it vanished. Production figures held steady too, with over 500,000 vehicles churned out across factories, though whispers of underlying demand worries linger as the post-credit landscape sharpens into focus.
The stock reacted predictably, if a bit wildly—TSLA shares jumped more than 5% in early trading Thursday, pushing the company's market cap past the $1 trillion mark once again. Elon Musk's net worth, tied so heavily to these swings, crossed $500 billion this week, underscoring just how much rides on Tesla's electric momentum. But let's not gloss over the cracks: European sales dipped amid fiercer local competition, and analysts are already eyeing a potential slowdown now that the tax perk is gone.
Moreover, this delivery spike feels like a one-off sugar rush. Tesla's global push into cheaper models and robotaxis might steady the ship, yet the core EV market shows signs of fatigue—rising rates, subsidy cuts, and rivals like BYD nipping at heels. However, the board's fresh proposal for Musk's mega-comp package, potentially worth a trillion if targets hit, signals big bets on AI and autonomy over plain old car sales. It's a pivot that's equal parts bold and risky, especially with Q4 looming without that credit buffer.
Still, for now, the headlines scream success. Tesla's ability to capitalize on policy tailwinds raises questions about sustainable growth in a maturing EV world—what happens when the incentives dry up entirely?