Tesla beats profit forecasts as AI spending stays in focus

Tesla reported third-quarter adjusted earnings that beat analyst expectations on Wednesday, with shares rising about 2% in after-hours trading. Revenue reached $28.05 billion, slightly above the $27.88 billion consensus estimate. Vehicle deliveries totaled 486,532 units, surpassing Wall Street's forecast of roughly 461,100, though down about 2% year-over-year. Adjusted earnings per share came in at 48 cents versus the expected 43 cents, while free cash flow reached $1.53 billion against predictions of a $4.92 billion outflow. Capital expenditures of $4.73 billion were well below the anticipated $7.5 billion, easing investor concerns about AI and robotics spending. The energy storage business grew as a profit driver, though Tesla warned tariffs would impact that segment more than its auto operations.