Tesla shares surge! Q3 global deliveries exceeded expectations, with European deliveries up 53% year-on-year in August.

Tesla's global deliveries in the third quarter exceeded analysts' expectations, providing a sign of stabilization for the electric vehicle maker during a period of market pressure, but still recorded a year-on-year decline.

Tesla announced on Friday that it delivered 486,532 vehicles globally in the third quarter, exceeding analysts' average expectation of 463,761. New Tesla registrations in Europe showed a significant rebound, while sales in the Chinese market declined year-on-year.

These delivery figures come at a time when Tesla is experiencing a difficult period of declining sales and weak stock prices, with intensified competition and sluggish demand in the United States continuing to weigh on the company. Meanwhile, CEO Elon Musk is working to shift the company's focus to cutting-edge businesses such as artificial intelligence, self-driving cars, and humanoid robots.

Following the announcement, Tesla shares rose 4.5% in early trading, but are still in a downtrend year-to-date. Furthermore, recent market rumors of a potential merger between Elon Musk's SpaceX and Tesla have fueled a temporary rebound in Tesla's stock price over the past few weeks.

Year-on-year decline, but exceeding expectations

In the third quarter of last year, Tesla delivered a record 497,099 vehicles, driven by a surge in sales as federal subsidies in the United States were about to be phased out. This year's third-quarter deliveries were down about 2% from that peak, but still exceeded market expectations by over 20,000 vehicles.

Nevertheless, Wall Street generally expects Tesla to achieve modest growth for the whole year, reversing the previous two years of declining annual sales.

In terms of vehicle lineup, the Model Y and Model 3 remain the absolute mainstays of sales. Apart from these two models, the company delivered only 8,295 other vehicles in total, including the controversial Cybertruck.

Previously, Tesla had discontinued production of the higher-priced Model S and Model X, and now offers only three models to consumers.

Huge investments support future planning

To support its business expansion, Tesla plans to spend over $25 billion this year to expand factory capacity and advance its Robotaxi business. The company disclosed in a filing this week that it has secured $30 billion in new loans and credit lines.

Regarding new products, Tesla has already begun production of the Cybercab, a Robotaxi model without a steering wheel or pedals, and has launched the Semi electric heavy-duty truck for sale. In addition, the long-awaited new Roadster sports car is also in the planning stages.

In the energy business, the deployment of energy storage products reached 13.7 GWh in the third quarter, higher than 12.5 GWh in the same period last year and slightly higher than 13.5 GWh in the second quarter of this year, continuing the moderate growth trend.

Europe recovers, China faces pressure.

There are noteworthy positive signs emerging in the European market. According to data from the European Automobile Manufacturers Association, Tesla's new car registrations in the EU increased by approximately 53% year-on-year in August, with a cumulative increase of 66% in the first eight months of the year.

Last year, Tesla's sales in the EU plummeted due to consumer boycotts sparked by Elon Musk's personal controversies. Currently, soaring oil prices and the influx of Chinese electric vehicles are stimulating overall demand for electric vehicles in the EU, from which Tesla is benefiting.

In contrast, competitive pressure in the Chinese market remains significant. Tesla continues to offer end-of-quarter discounts on the Model 3 and Model Y to maintain market share, but production at its Shanghai factory faces challenges.

According to data from the China Passenger Car Association, of the approximately 86,000 Tesla vehicles produced in China in August, about 36,000 were exported to overseas markets, resulting in a month-on-month decline in domestic deliveries.

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