Written by: Matt Britzman | Hargreaves Lansdow
- Delivered a record 497,099 vehicles over the third quarter
- Deployed a record 12.5 GWh of energy storage
- Shares up in pre-market trading
Tesla smashed expectations, delivering just shy of 500,000 vehicles for the quarter - a big beat versus consensus and even above the 470k+ that the dreamers were after. A key driver was the rush of buyers looking to lock in US EV tax credits before they expired, effectively pulling demand forward into this quarter. The challenge now is dealing with the potential slowdown that follows, and that’s where a new, more affordable model becomes crucial to keeping momentum going.
Energy was another standout. Deployments hit a new record, reinforcing Tesla’s push to diversify beyond cars and highlighting the growing importance of its storage business. That segment remains lumpy, but this quarter it delivered in a big way.
Shares have been on a tear in recent months, and today’s numbers add fuel to the fire. But investors would do well to remember that while having a robust underlying business still has a role to play, that’s not the main driving force. Tesla shares are trading as much on sentiment as they are fundamentals, and the core business is playing second fiddle to the AI story that underpins the trillion-dollar valuation - progress on self-driving and automation needs to continue at pace.