Tesla topped Wall Street expectations for third-quarter revenue on Wednesday, buoyed by a recovery in car deliveries and expanding energy storage sales, even as substantial investments in artificial intelligence and robotaxis trimmed profit margins.

The electric vehicle maker based in Austin, Texas, recorded $28.05 billion in revenue for the quarter ending September 30. That surpassed the $27.88 billion average forecast from analysts compiled by LSEG, while remaining slightly below the $28.10 billion generated during the same period last year.

Vehicle deliveries reached 486,532 units for the quarter, outperforming market projections of roughly 461,100 vehicles despite registering a 2% decline compared to the previous year.

For the second consecutive quarter, sales outstripped output, with 464,391 vehicles produced—reducing overall inventory levels by more than 22,000 units.…