Tesla's stock price has increased by 5% after the company reported better-than-expected sales for the third quarter.
What happened
The company delivered 486,532 vehicles between July and September, exceeding analysts' estimates of 456,896 vehicles. This surge in sales was largely driven by a rebound in demand in Europe, which offset the loss of US tax incentives and increased competition in China.
Tesla's core car business, which is the company's largest source of revenue, may be stabilizing after two years of declining annual sales. The company's valuation of around $1.40 trillion is heavily dependent on its long-term ambitions, including its push into artificial intelligence, robotaxis, and humanoid robots.
Analysts have raised their full-year forecasts, expecting 1.82 million deliveries in 2026, up from 1.65 million in the June consensus. The strong sales numbers have put Tesla on track for full-year deliveries growth, following two years of declines.
The company's robotaxi service is still small compared to its competitors, but it has made progress in recent months. Tesla's Full Self-Driving software has been approved in eight countries, and the company expects this to help sales further.
