Tesla's third-quarter vehicle deliveries smashed expectations on Wednesday, clocking in at a staggering record high that sent ripples through Wall Street. The electric vehicle giant reported global deliveries far exceeding analyst forecasts, a clear win amid the rush of buyers snapping up cars before the $7,500 federal tax credit vanished at quarter's end. Indeed, this boost came just in time, as consumers piled into showrooms fearing higher prices ahead.
However, the euphoria was short-lived for Tesla's stock. Shares dipped in after-hours trading, hovering around $240 per share, down roughly 2% from the day's close. Investors, it seems, are already fretting over what comes next—without that tax incentive, will demand hold steady? Tesla produced over 450,000 vehicles in the period, but deliveries topped out even higher, signaling a production ramp-up that's impressive yet precarious. Moreover, whispers of softening EV market demand post-credit have analysts scratching their heads, with some price targets now clustering near $330 for the year ahead.
The numbers paint a picture of Tesla's resilience in a choppy landscape. Q3 saw deliveries climb 15% year-over-year, driven not just by the Model Y and 3 staples but hints of Cybertruck gains too. Yet, beneath the headlines, competition from rivals like Ford and GM looms larger, their hybrids chipping away at pure EV dominance. Tesla's energy storage side offered some buffer, with deployments hitting new peaks, but it's the auto segment that steals the spotlight—and bears the scrutiny.
Still, Elon Musk's empire shows no signs of slowing its aggressive push into autonomy and robotics. However, as the tax credit era fades, the real test for Tesla's growth story begins. What does this mean for everyday drivers eyeing an EV switch?