Tesla sales bounce back, but for how long?

After months of sales slumps and customer boycotts, Tesla finally has some good news: its car sales jumped 7% last quarter.

The rebound comes after CEO Elon Musk’s embrace of Donald Trump and far-right politics alienated many customers. However, this sales bump comes with a major caveat. It was likely driven by a U.S. tax credit that expired in September, which prompted a buying surge for all electric vehicles. In fact, rivals like Rivian saw even bigger jumps.

While the news initially boosted Tesla’s stock, it ended the day down as investors remained skeptical. The core problem—Musk’s polarizing persona turning off buyers—hasn’t gone away.

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The sales jump was significant—497,099 vehicles versus an expected drop—but the future is uncertain. Musk continues to engage in culture wars on his platform X, recently canceling his Netflix subscription over what he called its “transgender woke agenda.”

Looking Ahead

To keep Musk focused on Tesla, the board has proposed a record-breaking pay package that could make him the world’s first trillionaire. The company is also pivoting investor attention to its futuristic driverless robotaxi and Optimus robot projects.

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However, these projects have had hiccups, with reports of robotaxis stopping suddenly or driving in the wrong lane. With Musk’s political stances continuing to cause backlash, especially in Europe where sales previously plunged 40%, Tesla’s path to sustained growth remains a rocky one.