New York (AFP) – Tesla’s stock jumped Friday after the electric car maker said its global sales dipped in the third quarter but were higher than expected. Elon Musk’s company sold 486,532 vehicles in the July-September quarter, two percent lower than the year-ago period but above most leading estimates. A larger drop had been expected given a surge in electric vehicle sales in the US during the same quarter last year due to the expiration of a tax credit at the end of September 2025, which was eliminated under legislation backed by US President Donald Trump. Tesla shares were up 5.0 percent near midday.
Friday’s figures released by Tesla were global and did not break out US sales. However, the surge in gasoline prices due to the US-Iran war has boosted interest in EVs. Analysts at JPMorgan Chase had projected sales of 482,000, pointing to data from Europe in July and August showing increased sales from the year-ago level while they projected lower sales in China and the United States.
Among other automakers, Ford said its third-quarter sales fell 6.6 percent to 509,764 vehicles. The US automaker pointed to the planned phase-out of the Ford Escape and Lincoln Corsair as factors. The company also saw a sharp drop in EV sales following the phase-out of the tax credit. Ford has also been impacted by a fire at a key metal supplier for its best-selling F-150 pickup truck. But overall truck sales still rose in the quarter, and Ford said it was on track for the F-150 to lead the American market for the 50th straight year.
At Stellantis, third-quarter sales came in at 324,277, nearly identical with the year-ago level. While sales fell for the Jeep brand, the Ram slate of pickup trucks scored increases from the year-ago level. Analysts have described the US car market as resilient despite persistent inflation. Shoppers are still going to dealerships and purchasing cars, in some cases trading “down” to lower-cost options if they can’t afford their first choice. Cox Automotive estimated that overall third-quarter US sales would slip 0.7 percent from a year ago to 4.1 million units.
Ford’s stock declined 2.2 percent while Stellantis slumped 6.6 percent.
© 2024 AFP
