NEW YORK (AP) — Tesla reported a surprise increase in sales in the third quarter as the electric car maker likely benefited from a rush by consumers to take advantage of a $7,500 credit before it expired on Sept. 30.
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The company reported Thursday that sales in the three months through September rose 7% compared to the same period a year ago. The gain follows two quarters of steep declines as people turned off by CEO Elon Musk’s foray into right-wing politics avoided buying his company’s cars and even protested at some dealerships.
Sales rose to 497,099 vehicles, compared with with 462,890 in the same period last year. Analysts expected sales to fall slightly to 456,000, even with a boost from customers seeking to use the electric vehicle incentive.
Tesla stock rose nearly 2% to $468.52 in early morning trading on the news.
Investors have been optimistic about the company in recent weeks, sending the stock up 34% in September alone. They are betting Musk’s planned new cheaper version of his bestselling Model Y will recharge sales. He had promised that car earlier this year. Now the launch is expected in the current quarter or early next year.
The rise in the stock also reflects Musk success in shifting attention away from car sales to other aspects of the business — the rollout of its driverless robotaxi service planned for several cities and its Optimus robots for factory work and household chores.
The 7% rise for the third quarter compares with a 13% plunge in the first quarter when Musk led President Donald Trump’s government cost-cutting efforts at the Department of Government Efficiency. In the following three months through June, sales fell again 13%.
The backlash in Europe against Musk had been also been fierce with sales plunging 40% in more than two dozen countries after he publicly supported far-right politicians there.
Tesla reports third-quarter earnings later this month. Profits for the previous quarter fell 16% as the company continued to lose market share to European EV makers and the fast-growing Chinese rivals, such as BYD.
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