Tesla had a better summer than many investors expected. The electric carmaker delivered 486,532 vehicles in the third quarter, Electrek reported, citing the company's figures. That was down 2.1% from the same period last year but up 1.3% from the second quarter, and it beat analysts' estimates. AFP reported that Tesla shares jumped after the release.

The company produced 464,391 vehicles in the quarter, fewer than it delivered, which means it sold some cars from inventory. Tesla also deployed 13.7 gigawatt-hours of energy storage, such as its Megapack batteries for utilities and Powerwall units for homes.

Energy storage has become a bright spot. Utilities and data centers are buying large batteries to store power and smooth out supply, and Tesla is one of the biggest suppliers.

Car sales have been harder. Tesla faces strong competition from Chinese makers such as BYD, and its lineup is aging, with the Model 3 and Model Y making up most sales. The end of the federal electric vehicle tax credit in September 2025 also weighed on U.S. demand.

Some background: Tesla delivered about 1.8 million vehicles in both 2023 and 2024. Its yearly sales slipped in 2024 for the first time, then fell again in 2025. CEO Elon Musk has shifted focus toward self-driving cars, robotaxis and humanoid robots, which he says will drive the company's future value.

High gas prices this year may help. With gasoline above $4 a gallon, more drivers are looking at electric cars, even as interest rates make car loans more expensive.

Tesla will report full third-quarter financial results later this month. Investors will watch profit margins, which have shrunk as the company cut prices.

What we know: Tesla delivered 486,532 vehicles, beating estimates.
What we don't: How profitable the quarter was, and whether demand holds up into the holidays.