Tesla has once again captured the spotlight with record-breaking sales in the third quarter of 2025. Driven by a rush from U.S. buyers eager to take advantage of a soon-to-expire federal tax credit, the company posted figures that broke its previous global sales record.
Between July and September, Tesla delivered 497,099 vehicles worldwide, surpassing the company’s prior high from late 2024. The figure also represents a 29% jump over the second quarter’s 384,122 sales, and a 7% increase compared to the same period in 2024. Importantly, this was the first quarter in 2025 where Tesla achieved year-over-year growth.
The buying frenzy was fueled by the $7,500 federal EV tax credit introduced under the Biden administration in 2022. However, the incentive “expired on September 30” after being eliminated under President Donald Trump’s new tax and spending legislation. Analysts warn that front-loaded demand will likely weaken Tesla’s sales momentum in the upcoming quarters. Despite the strong Q3, Tesla’s overall sales for the year remain 6% lower than the same stretch in 2024.
On Wall Street, the report briefly lifted Tesla’s stock by about 2%, nearly pushing it toward its December peak. The spike temporarily boosted CEO Elon Musk’s fortune to $500.8 billion, making him the first individual to cross the half-trillion-dollar mark, according to Forbes’ real-time billionaire tracker. By afternoon, however, Tesla shares fell 4%, trimming Musk’s net worth back to $490 billion.
Tesla releases only global sales data, but U.S. automakers confirmed that the American EV market surged in Q3 ahead of the tax credit cutoff. General Motors said its U.S. EV sales more than doubled, while Ford reported a 30% increase, both hitting records. Hyundai echoed the trend, stating its EV sales doubled, though it later slashed prices of its IONIQ 5 by an average of $9,155. Experts suggest similar price cuts from other automakers are likely as competition intensifies against traditional gasoline and hybrid cars.
Despite its quarterly boost, Tesla’s market share is slipping worldwide. Data shows consumers are increasingly choosing EVs from rivals. Some of this erosion stems from political backlash against Musk himself, whose outspoken activities have sparked criticism in both the U.S. and Europe. More significantly, Chinese automakers particularly BYD are eating into Tesla’s dominance.
BYD reported a 31% rise in EV passenger car sales year-over-year, even without tapping the U.S. market. With 1.6 million EVs sold so far this year, BYD is now on track to overtake Tesla, which sits at 1.2 million sales in 2025.