Tesla sales increase, indicating a recovery in demand for electric cars

Tesla said on Wednesday that its global sales of cars and trucks rose 6.4 percent in the third quarter, the first quarterly increase the company has reported this year and a sign that demand for electric vehicles may be recovering as interest rates fall.

The automaker delivered 463,000 vehicles in the July-September period, up from 435,000 a year earlier, offering hope to investors that the company’s sales have stabilized after falling in the first half of the year.

The sales data was slightly below Wall Street analysts’ expectations, and Tesla’s stock price fell about 5 percent on Wednesday morning.

Tesla boosted its sales in part by offering 2.5 percent financing to qualified buyers in the United States, well below the market interest rate. It will be easier for the company, led by Elon Musk, to provide cheaper financing after the Federal Reserve cut interest rates by half a percentage point in September, the first of what is expected to be a series of cuts. Central banks in Europe, China and elsewhere have also cut interest rates.

Interest rates determine the size of your monthly car payments, and are often more important to buyers than sticker prices. That’s why many analysts believe that car sales in the US in particular could rise as the Federal Reserve lowers interest rates further.

“There’s a group of people who will say, ‘Now is not the time to set aside $50,000 for a new car,’” said Charles Chesbrough, chief economist at Cox Automotive Research. “They may decide to wait a few months until after the election, until the Middle East calms down.” “So they can see if the Fed will lower interest rates further.”

Tesla’s share of electric vehicle sales declined as competitors such as General Motors, Hyundai, Ford Motor Company and BMW offered more battery-powered models. But Tesla still accounts for nearly half of electric vehicle sales in the United States and sets the tone for the market here and in other countries.

Electric vehicle sales, while still growing, have fallen short of expectations and prompted General Motors, Ford, Volvo and others to scale back or slow investment in electric vehicle production. Tesla’s sales rebound could signal faster growth for electric models, one of the pillars of the Biden administration’s efforts to combat climate change.

General Motors said on Tuesday that sales of its electric models in the United States in the third quarter jumped by 60 percent compared to the previous year, reaching more than 32,000 cars. The company’s US sales of all vehicles fell by about 2 percent during the quarter.

Ford on Wednesday reported a 12 percent increase in U.S. electric vehicle sales in the third quarter, to about 23,500, and a 0.7 percent increase in total car and truck sales.

Tesla still faces big challenges and questions about its strategy. The company’s sales have rebounded in China, the largest car market in the world. But the Chinese auto market is highly competitive, and many automakers are losing money or making little profits there.

In Europe, sales of electric cars are declining after Germany reduced subsidies to buyers. Tesla still relies on just two vehicles — the Model Y SUV and the Model 3 sedan — for most of its sales, while competitors like General Motors and Hyundai-Kia offer more options, newer designs and often lower prices.

GM’s best-selling battery-powered model is a new electric version of the Chevrolet Equinox SUVGM, which sold more than 9,700 vehicles in the third quarter, and this week began selling an entry-level model of that vehicle that starts at $35,000 before the federal and state break. The cheapest Tesla Model Y sells for about $45,000 before tax incentives.

In addition to selling more expensive cars, Tesla appears to be struggling because Mr. Musk has alienated many potential buyers with his provocative statements on X, the social media site he owns, and his outspoken support for former President Donald J. Trump and Trump. Conservative reasons. Centrist and left-leaning consumers are more likely to buy electric cars than conservatives.

Mr. Musk has bet Tesla’s future on autonomous driving, while saying little about plans for new models. On October 10, the company plans to unveil a self-driving taxi, but analysts doubt that Tesla is close, as Musk says, to developing a vehicle that can navigate without human intervention.

There is speculation that Tesla will also unveil a cheaper passenger car on the same day, increasing the number of people who can buy a Tesla. The company said it was working on such a product, but did not confirm that it would offer the car this month or when it might go on sale.