Tesla profit beats estimates as energy storage and deliveries grow

Tesla reported better-than-expected adjusted profit for the third quarter, causing shares to rise about 2% in after-hours trading. Revenue hit $28.05 billion, beating analyst estimates of $27.88 billion, with adjusted earnings per share of 48 cents versus the 43 cents forecast. Vehicle deliveries recovered to 486,532 units, exceeding Wall Street expectations of roughly 461,100, though still down about 2% year-over-year. Free cash flow turned positive at $1.53 billion against predictions of a $4.92 billion outflow, while capital expenditures of $4.73 billion came in well below the feared $7.5 billion. Tesla's energy storage business is growing as a profit driver, benefiting from grid-scale battery demand. The company is also exploring a potential merger with SpaceX, and its autonomous driving operations are expanding, with Cybercab fleets growing in Austin and robotaxi rides launching in multiple Florida cities.