This isn’t the first time Tesla has lost the EV tax credit

Core Insights - Tesla reported a significant increase in sales, delivering over 497,000 EVs in the third quarter, surpassing analyst expectations of around 450,000 and marking a 7.5% increase year-over-year [2][3] - The surge in sales was attributed to a rush of consumers purchasing EVs before the elimination of the $7,500 tax credit, which had been in place for 17 years [3][4] - The removal of the tax credit is expected to negatively impact consumer demand in the near term, with potential sales declines anticipated in the upcoming quarters [4][6] Sales Performance - Tesla's deliveries increased by approximately 100,000 units compared to the previous quarter, indicating a recovery from earlier sales struggles [2] - Analysts, including Dan Ives, characterized the sales figures as a "massive bounce back," highlighting the turnaround after a challenging first half of the year [2] Future Outlook - The long-term impact of the tax credit elimination on Tesla's sales remains uncertain, with concerns about potential demand drops in the next two quarters [4][6] - Tesla has acknowledged the risks associated with the loss of consumer incentives in its quarterly filings, indicating awareness of the potential negative effects on demand and financial returns [5] - Factors influencing Tesla's long-term performance include its ability to maintain competitive pricing, regain market share in Europe and China, and deliver on timelines for a more affordable Model Y [7]