Tesla reverses sales decline in Q3, sells 50k more cars than it built

In a surprising turn of events, Tesla has reported its production and delivery figures for the third quarter of 2025, revealing a positive trend that contrasts with previous months of declining sales. The automaker has made significant strides in reducing its inventory, which had been a growing concern for the company. During the period from July to September, Tesla produced a total of 447,450 electric vehicles. This figure represents a 4.8% drop compared to the same quarter last year. However, the production of the Models 3 and Y saw a more modest decline, with 435,826 units produced—a decrease of just 1.8% year-over-year. In contrast, the production of the higher-end Models S and X, along with the Cybertruck, faced substantial cutbacks, with only 11,624 units made, marking a dramatic 55.1% reduction compared to the previous year. On a brighter note, Tesla's sales performance exceeded expectations, with 497,099 vehicles sold in Q3 2025. This figure shows a robust 7.4% increase over the same quarter in 2024. The Models 3 and Y were the standout performers, achieving a 9.4% rise in sales to reach 481,166 units. However, the older Models S and X, along with the controversial Cybertruck, continued to struggle, with sales plummeting by 30.5% to 15,933 units. Analysts had initially forecasted that Tesla would sell fewer than 450,000 vehicles during this quarter, making the actual sales figures particularly impressive. The conclusion of the IRS clean vehicle tax credit in the United States is thought to have played a pivotal role in boosting sales, although positive registration data from European markets, including France, Spain, Denmark, and Norway, also contributed to the growth. Overall, Tesla has successfully moved over 45,000 Models 3 and Y and more than 4,000 of its other EVs off its inventory in this quarter.