Tesla Record Deliveries, Shares Slip

Tesla just posted a surprise record quarter, delivering 480,126 vehicles—up 25% year over year—with European sales surging 77% and outpacing U.S. demand, which actually dropped. The big story: Tesla beat Wall Street’s expectations, but dug into inventory to do it, and now faces a tougher global playing field—BYD outsold Tesla again, and Chinese brands like XPeng are advancing fast, armed with new tech and aggressive expansion plans. Energy storage is quietly becoming a profit pillar, hitting a record 13.5 GWh deployed, but it’s not enough to offset pressure on car margins, especially if U.S. softness continues.

But here’s the catch: even with these wins, Tesla’s stock slipped 7.5% as investors worry about slowing U.S. sales and rising competition. In Europe, regulatory shifts and a possible rollback of UK clean car mandates could squeeze Tesla’s growth, while rivals from China are grabbing record market share—BYD just overtook Tesla as Britain’s top-selling EV brand. Tesla’s answer: launch a new, larger Model Y in the U.S., experiment with creative financing abroad, and ramp up software like Full Self-Driving, but the risks of cannibalization and affordability remain if high rates persist.

Featuring insights from ACEA, Cox Automotive, Deutsche Bank, and on-the-ground reporting from Bloomberg.com, The Verge, and others.

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