Tesla stock jumps as Q3 vehicle sales beat estimates despite 2% YoY decline

The latest market report highlights that Tesla's stock jumped Friday after the electric car maker stated its global sales dipped in the third quarter but were elevated than anticipated.

Elon Musk's firm sold 486,532 vehicles in the July-September quarter, two percent softer than the year-ago period but above most leading estimates.

A larger dip had been anticipated given a surge in electric vehicle sales in the US during the same quarter last year due to the expiration of a tax credit at the end of September 2025, which was eliminated under legislation backed by US President Donald Trump.

Tesla shares were up 5.0 percent near midday.

Friday's figures released by Tesla were global and did not break out US sales. But the surge in gasoline prices due to the US-Iran war have boosted interest in EVs.

Market watchers at JPMorgan Chase had projected sales of 482,000, pointing to data from Europe in July and August showing increased sales from the year-ago level, while they projected softer sales in China and the United States.

Among other automakers, Ford stated its third-quarter sales declined 6.6 percent to 509,764 vehicles.

The US automaker pointed to the scheduled phase-out of the Ford Escape and Lincoln Corsair as factors. The firm additionally saw a sharp dip in EV sales following the phase-out of the tax credit.

Ford has additionally been impacted by a fire at a key metal supplier for its best-selling F-150 pickup truck. But overall truck sales still rose in the quarter, and Ford stated it was on track for the F-150 to lead the American market for the 50th straight year.

At Stellantis, third-quarter sales came in at 324,277, nearly identical with the year-ago level.

While sales declined for the Jeep brand, the Ram slate of pickup trucks scored increases from the year-ago level.

Market watchers have described the US car market as resilient despite persistent inflation. Shoppers are still going to dealerships and purchasing cars, in some cases trading "down" to softer-cost options if they can't afford their first choice.

Cox Automotive estimated that overall third-quarter US sales would slip 0.7 percent from a year ago to 4.1 million units.

Ford's stock declined 2.2 percent while Stellantis slumped 6.6 percent.