Tesla showed sales growth in the third quarter of 2025, but experts predict difficult times

Tesla recorded sales growth for the first time this year, thanks to the hype surrounding federal tax breaks for electric vehicles in the US, which ended on September 30, 2025, writes the Verge.

The company reported production of 447,450 vehicles in July-September, including 435,826 Model 3 and Model Y, and another 11,624 Model S, Model X and Cybertruck. This is 5% less than in the same period in 2024.

Meanwhile, Tesla delivered 497,099 vehicles, up 7.4% from a year ago. Sales exceeded production by almost 50,000 vehicles, helping to reduce inventory.

Demand in the US was supported by tax incentives, but the situation outside the country is worse: in Europe, sales have fallen by 37% since the beginning of the year, and in China the company is losing ground due to competition from BYD and Geely. Experts predict a sharp drop in sales in the US after the abolition of benefits.

Elon Musk has warned of "some tough quarters" but believes in a recovery thanks to plans for AI, including robo-taxis and humanoid robots. He says half the US population will have access to robo-taxis by the end of 2025, which currently only operates in Austin and San Francisco.

The company also unveiled a revamped Master Plan that focuses on AI and robotics, pushing the traditional electric car business to the back burner. At the same time, Tesla is still struggling to update its lineup: the promised cheaper Model Y has yet to enter mass production.

The sales report comes amid discussions about a new compensation package for Musk that could make him the world's first trillionaire. To do so, Tesla must meet a series of ambitious goals: producing more than a million robots and robo-taxis and achieving $7.5 trillion in shareholder value. The package will be voted on Nov. 6, 2025.

Recall that Elon Musk's fortune recently exceeded $500 billion, largely due to a 4% increase in Tesla shares.