Tesla sold a lot more EVs than Wall Street expected, and the stock is surging

By William Gavin

Electric vehicle giant had the best three-month period for vehicle sales this year, but it was less than a year ago

Tesla sales still came up short relative to the third quarter of 2025, which was unusually strong for the entire electric-vehicle industry.

Tesla delivered many more electric vehicles in the third quarter of 2026 than Wall Street had expected, sending shares higher on Friday.

The company delivered 486,532 EVs last quarter, roughly 5.5% more than the 461,000 sales expected by analysts, according to FactSet data. It's the second quarter in a row that Tesla (TSLA) has positively surprised the Street, and it's the company's best three-month period for sales so far this year.

Compared with last year, however, Tesla's deliveries were down 2.1%. The company delivered 497,099 EVs to consumers in the third quarter of 2025, but the number was elevated as consumers pulled up their EV purchases to take advantage of major tax credits that were set to expire.

In the latest quarter, Tesla said it delivered 478,237 Model Y and Model 3 cars, compared with 481,166 SUVs and sedans during the same time in 2025. The cars typically account for the bulk of Tesla's sales, especially in major markets like China.

Tesla also delivered 8,295 "other vehicles," a category that is primarily made up of Cybertruck electric pickup trucks. Earlier this year, Tesla discontinued the Model S and Model X vehicles.

Rival Rivian Automotive (RIVN) on Friday also said it delivered 19,248 electric trucks and SUVs last quarter, a 46% increase year-over-year. Meanwhile, Ford Motor (F) reported an 80% decline in EV sales compared with a year ago, while General Motors (GM) said sales of several EVs dropped dramatically in the third quarter.

Tesla shares rallied 4.7% on Friday, while Rivian stock was down 3.1%, Ford shares were 1.4% lower and GM shares slipped 1.3%.

Analysts often note that investors give the revenue-generating automotive business little attention, preferring to focus on robotaxis and other ventures. But vehicle deliveries can "create noise" on the day that they are reported, according to UBS analyst Joseph Spak.

"Investor focus is solely on the transition to a physical AI company and the stock price is driven by narrative and sentiment around future possibilities from AI ventures," Spak said in a note to clients. He also said investors are interested in a potential merger with SpaceX (SPCX), which is run by Tesla CEO Elon Musk.

Tesla on Friday also said it deployed 13.7 gigawatt-hours of energy storage products, below the 15.9 gigawatt-hours expected by analysts.

After a slow start to the year, analysts had expected the energy business to heat up in the second half of 2026. Tesla's Megapacks, analysts say, are critical to meeting demand for power driven by the U.S. build-out of data centers.

"The pace of growth for Tesla's energy storage business has softened, but our view of the demand environment has not changed," William Blair analyst Jed Dorsheimer said in a client note on Friday. He attributes the slowed pace to supply constraints.

Tesla is set to report third-quarter earnings on Oct. 21.

-William Gavin

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10-02-26 1829ET