Tesla beats revenue estimates as deliveries rebound, but AI spending weighs on profit

Tesla beat Wall Street estimates for third-quarter revenue on Wednesday, reporting $28.05 billion as vehicle deliveries rebounded and energy storage grew, though heavy AI and robotaxi spending weighed on profit. Shares rose over 1% in extended trading. Deliveries reached 486,532 vehicles, beating expectations of about 461,100, though down 2% from a year earlier. Capital expenditure was $4.73 billion, below the expected $7.5 billion, while free cash flow hit $1.53 billion against a forecast cash burn. Model 3 and Model Y comprised nearly all deliveries. Results come as Wall Street weighs a possible Tesla-SpaceX merger, with special committees formed to discuss a deal. Tesla's Cybercab fleet in Austin grew from under 40 to over 300 vehicles in a month, and its energy unit has become a key counterweight to the auto business.