The electric car company reported adjusted earnings of 48 cents per share, compared with market expectations of 43 cents, CNBC reports.
Revenue in the third quarter amounted to $28.05 billion, compared with analysts' expectations of $27.9 billion.
Revenue from vehicle sales decreased by 3 percent year on year.
The company's operating profit also decreased by 56 percent year on year, as spending on AI and other development projects increased.
The stock, which is down just over 14 percent this year, was up 1.7 percent 30 minutes into after-hours trading.
On Tuesday, CEO Elon Musk said that Tesla and his space and AI company SpaceX had formed special committees to discuss a possible merger.
