 "Tesla's US sales surge, and that's not about Musk")
Tesla has reported a sharp 22 per cent increase in car sales during the third quarter of this year, marking the first notable rebound after months of sliding demand and intensifying scrutiny of its chief executive, Elon Musk.
The company delivered nearly half a million vehicles between July and September, a number that far exceeded Wall Street expectations and reversed a year-long slump that saw sales repeatedly fall in both the United States and Europe.
The rebound came as a welcome relief for Tesla investors who have watched the brand lose market share to rivals in recent quarters. Yet the headline figure may not be the unqualified comeback story it appears at first glance.
Much of the surge was driven by a last-minute rush from US consumers to take advantage of an expiring federal tax credit for electric vehicles. And crucially, the rebound appears to owe little to Musk himself, whose personal popularity has continued to slide both in America and overseas.
Elon Musk’s declining popularity
While Tesla’s sales picked up in the last quarter, Musk’s image remains tarnished.
His political interventions, controversial posts on social media and open alignment with far-right figures have alienated swaths of potential buyers.
In Europe, his outspoken comments on immigration and domestic politics triggered protests and boycotts earlier this year, leading to a steep decline in demand.
From January to August, Tesla’s European sales were down 32.6 per cent year-on-year, illustrating how Musk’s personal brand has become a liability for the automaker.
Impact Shorts
More ShortsFor many consumers, Tesla’s third-quarter rebound is not a reflection of renewed faith in Musk but rather the result of opportunistic timing around government incentives.
Musk’s unpopularity is a persistent issue for the brand and experts argue that Tesla’s gains will remain fragile so long as its CEO continues to court controversy, a report by The Associated Press said.
EV incentive rush
At the heart of Tesla’s recent sales surge was the expiration of a $7,500 federal tax credit for electric vehicle purchases.
The incentive, which significantly reduced the cost of new EVs, officially ended on September 30. Buyers rushed to finalise orders before the deadline, creating an artificial spike in demand across the EV market.
Tesla was not the only company to benefit from this scramble. Rivian, for example, reported a 32 percent sales jump during the same period, outpacing Tesla’s growth rate.
The temporary boost underlines how vulnerable Tesla remains to external factors like government subsidies.
Once the incentive disappeared, demand might sharply fall back creating renewed pressure on the company to stimulate sales through price cuts, new product launches or marketing shifts.
Other automakers outperform
Although Tesla’s numbers were impressive in isolation, they paled compared to those of its competitors.
Rivian, BYD and several European manufacturers reported larger percentage gains in sales during the same quarter.
This suggests that Tesla’s performance, while strong, is far from unique and does not necessarily reflect an enduring recovery.
Indeed, the company continues to struggle against an increasingly crowded global EV market.
In China, Tesla has been losing ground to domestic producers like BYD and Geely, who offer cheaper, fresher models that appeal to local buyers, The Verge reported. The fact that rivals saw even sharper jumps last quarter indicates that Tesla’s turnaround is partial and relative, rather than dominant.
European signs of life, from a low base
Even in Europe, where Tesla has faced some of its steepest declines due to political backlash against Musk, September brought signs of recovery.
Sales ticked upward for the first time in 2025 after falling dramatically throughout the year. However, these gains came from a low baseline, with Tesla still down more than 30 per cent year-on-year over the first eight months.
The improvement suggests that the company may be stabilising in Europe, but the road back to sustained growth remains steep. The continent’s buyers have proven more sensitive to Musk’s public persona than their American counterparts, and Tesla’s current vehicle lineup — led by the aging Model 3 and Model Y — has done little to excite fresh interest.
Why the boost may not last
The risk now for Tesla is that the sales surge proves short-lived. With the US tax credit expired, future quarters may see a demand vacuum.
Experts warn that Tesla will struggle to maintain momentum without new models or significant pricing adjustments. The company has announced plans for a cheaper version of the Model Y, but production is not expected to ramp up until late 2025, leaving a long gap in its product cycle.
Tesla’s strategy of shifting investor attention toward its robotics and autonomous vehicle projects has provided some distraction, but those technologies remain in early stages and face numerous regulatory and technical hurdles.
The recent rollout of Tesla’s robotaxi service in Austin, for example, was marred by reports of unexpected braking and erratic driving.
While Musk insists these issues will be resolved quickly, consumer confidence in such innovations remains tentative.
Investors still watching closely
Tesla’s stock reacted dramatically to the latest sales figures. Shares initially spiked on news of the 22 per cent growth but quickly gave up those gains, falling more than 4 per cent by the end of trading.
The volatility reflects investor uncertainty.
While some see the numbers as evidence of a possible turnaround, others remain unconvinced that Tesla has truly escaped its recent slump.
The company’s financials still reflect significant headwinds.
Profits were down 16 per cent in the previous quarter and Tesla continues to cede market share in both Europe and China.
Meanwhile, Musk’s proposed trillion-dollar pay package has sparked controversy, further tying the company’s fortunes to the polarising figure of its CEO.
A fragile turnaround story?
Taken together, Tesla’s third-quarter results mark a significant but fragile rebound.
The 22 per cent jump in sales is the strongest sign all year that the automaker may be stabilising after a bruising period of falling demand and mounting competition.
Yet much of the gain was driven by temporary incentives rather than renewed consumer enthusiasm for Tesla itself.
Musk’s personal brand remains a major drag, particularly in Europe, and the company’s reliance on an ageing lineup of vehicles leaves it vulnerable to competitors.
While Tesla may be turning a corner, the path ahead is precarious. Sustained growth will depend less on fleeting government incentives and more on the company’s ability to deliver new, appealing vehicles that can outcompete a fast-moving EV market.
For now, Tesla’s 22 per cent sales surge offers a glimmer of optimism but little certainty. The true test will come in the quarters ahead, once the incentive-driven bump fades and the market settles into its new normal.
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