Tesla’s EV sales top estimates with auto business rebounding

TESLA reported better-than-expected sales for the third quarter, a sign of stability for the company’s core business at a challenging moment for the electric vehicle market.

The automaker delivered 486,532 vehicles worldwide in the period, according to a statement on Friday (Oct 2). That compared with 463,761 expected on average in analyst estimates compiled by Bloomberg.

The results are a boon for Tesla following a period of declining auto sales and a lagging stock, with competition in the crucial China market and sluggish demand in the US pressuring the company. CEO Elon Musk is working to reorient Tesla around the futuristic business lines of artificial intelligence, driverless vehicles and humanoid robots.

The sales tally represents a year on year dip from the 497,099 vehicles Tesla delivered in the Q3 last year, a record driven by customers rushing to buy before the elimination of federal incentives in the US. Still, Wall Street anticipates Tesla will be able to modestly boost sales this year after two consecutive annual declines.

Tesla shares rose 1.6 per cent before regular trading in New York. BLOOMBERG