Tesla’s revenues rebounded as consumers raced to claim the expiring tax credit

Tesla reported a profitable third quarter today — its first this year — as shoppers rushed to snatch up the company’s electric cars. In record numbers Before the federal EV tax credit expires.

Tesla said it had net income of $1.4 billion on revenue of $28.1 billion in the quarter ending in September. This represents a 12% increase in revenue and a 37% decrease in profits during the third quarter of 2024, when the company generated $2.2 billion in net income on revenue of $25.2 billion. Tesla’s revenues were higher than Wall Street expectations of $26.24 billion. According to data collected by LSEG.

Tesla was widely expected to have a relatively good quarter as a result The $7,500 federal tax credit expires On September 30th. The company sold a record number of electric vehicles in the third quarter, delivering a total of 497,099 vehicles, an increase of 7.4 percent compared to the third quarter of 2024. Tesla also sold about 50,000 more cars than it produced, which helped reduce the extra inventory that built up during the first half of the year.

But this is likely to be a rare positive quarter in a tough year for Tesla. The company announced the first Sales decline year on year in 2024 and is expected to do the same at the end of this year, with analysts predicting a decline of 8.5 percent. In addition to its aging vehicle lineup, Tesla also faces stiffer competition in all major markets than ever before. Elon Musk’s far-right political rhetoric, donations and work for the Trump administration have also had a significant impact. Many of the company’s liberal clients repelled.

As the country’s largest seller of electric vehicles, Tesla is a clear leader in the health of the market. Experts predict that sales will decline significantly in the United States after the tax credit disappears. Musk himself has said the company will face “some tough quarters” thanks to incentives expiring and other macroeconomic factors. But he believes Tesla will rebound when its AI plans come to fruition, including robotics and humanoid robots. Musk said that 50 percent of the US population will have access to a Tesla robotaxi By the end of 2025. So far, the vehicles are only available in Austin and San Francisco.

The sales report follows the proposal New salary package for MuskWhich, if approved, could make him the world’s first trillionaire. Musk will need to achieve a series of ambitious milestones to get compensation, including producing more than 1 million robots, 1 million taxis, and creating $7.5 trillion in value for Tesla shareholders. Tesla is holding a shareholder meeting on November 6 to vote on the proposal.