Tesla’s global deliveries rose in the third quarter, marking the first increase this year for the electric vehicle maker

Low-interest financing, attractive leasing offers, price reductions and free charging boosted Tesla’s global deliveries in the third quarter, marking the first increase this year for the electric vehicle maker.

The Austin, Texas-based company said Wednesday it delivered 462,890 vehicles from July to September, boosted by loans as low as 1.99% and $299 month-to-month leasing of the Model 3, its least expensive vehicle. In the same period last year, it delivered 435,059 vehicles.

The July-to-September figure was slightly above analyst estimates of 462,000 for the period, according to data provider FactSet.

However, Tesla Inc. shares They fell sharply before the opening bell, falling more than 4%.

Tesla has struggled to sell its aging model lineup for much of the year as electric vehicle sales growth in the U.S. and Europe has slowed amid concerns about range, price and the ability to charge while traveling.

A sales decline earlier in the year led to unprecedented discounts for the automaker, which reduced its industry-leading profit margins. Analysts estimated that the average sales price for Tesla vehicles in the third quarter was $42,500, the lowest price in four years.

The sales decline will likely result in a decline in third-quarter earnings when they are announced on October 23.

Tesla’s sales decline is due to increasing competition from legacy and upstart automakers trying to wrest market share from the company.

Nearly all of Tesla’s sales came from the smaller and cheaper Model 3 and Y, and the company sold only 22,915 of the more expensive models, including the X and S, as well as the new Cybertruck.

Wedbush analyst Dan Ives wrote in a note to investors Tuesday that third-quarter sales will rebound as sales in China continue to increase and prices and demand stabilize. As China continues to be excited by the Tesla demand story with favorable leasing/financing terms and pent-up demand in the region, we are confident that we will see significant growth in the region,” he wrote.

Europe will remain sluggish under macroeconomic pressures, and U.S. demand should stabilize, Ives wrote.

However, BNP Paribas Exane said in a note to investors that the market’s long-term expectations are quite high for Tesla. The company said sales estimates for 2026 and 2027 “remain 10% to 15% below market value, respectively.”

Tesla is scheduled to unveil a purpose-built robotaxi at an event next week.