Tesla stock edged lower on Friday, extending the steep decline from the previous session despite the company reporting record deliveries.
At the time of writing, the Tesla stock slipped over 1% to $430.97, following Thursday’s 5.1% drop.
The S&P 500 and Dow Jones Industrial Average rose 0.2% and 0.3%, respectively.
Tesla deliveries hit record levels
Tesla delivered 497,099 vehicles in the third quarter and built 447,450 units.
The figure is well above the 447,600 figure expected by analysts surveyed by FactSet and the 443,079 figure in the company’s own distributed consensus.
The quarter was marked by continued weakness in Europe, where sales have slumped amid growing consumer backlash against CEO Elon Musk’s political rhetoric and activism, alongside rising competition from rivals such as Volkswagen and China’s BYD.
The European slowdown was partly offset by strength in the US, where buyers moved quickly to take advantage of a federal EV tax credit before its expiration under President Donald Trump’s latest spending bill.
The company’s energy division also posted strong numbers, deploying 12.5 GWh of storage products, nearly double the year-ago level.
Canaccord analyst George Gianarikas described the results as a “banger” but questioned the outlook beyond the current year.
He projected a decline in fourth-quarter sales following the expiration of US EV tax credits, with growth resuming in 2026.
Year-to-date, Tesla has delivered about 1.2 million vehicles, representing a decline of roughly 6% compared with the same period in 2024.
Investors had already priced in strong deliveries, with Tesla shares climbing about 40% in the month leading up to the report.
Analysts are now focused on how demand trends will shift without federal incentives.
Wells Fargo analyst Colin Langan cautioned that deliveries could weaken in the fourth quarter as Tesla winds down discounts and promotions.
He expects added margin pressure and lower regulatory credit sales, placing his 2025 earnings estimate 29% below Wall Street’s consensus.
Goldman Sachs also flagged the expiration of tax credits as a likely headwind but said seasonality, new model launches, and upcoming catalysts such as the November 6 shareholder meeting could provide support.
Governance debate over Musk’s pay
The delivery report was also complemented by a letter from the Comptroller of the City of New York, urging shareholders to vote against CEO Elon Musk’s performance-based pay package, potentially worth $1 trillion if all incentives are met.
The compensation plan reflects Musk’s goal of maintaining control over 25% of Tesla stock.
While critics argue the package is excessive, analysts expect it to pass.
Wedbush analyst Dan Ives said there is a “better chance of me playing in the NFL this season” than shareholders rejecting the award.
Gary Black, cofounder of Future Fund Active ETF, also said there is “no chance” the plan fails.
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