Tesla Inc. shares advanced nearly 3% on Thursday, reclaiming ground after a volatile stretch, as investors weighed the electric-vehicle maker's record vehicle deliveries against thinner margins and heavy spending on autonomy and artificial intelligence.

The stock rose $8.93, or 2.73%, to $336.44 in afternoon trading on the Nasdaq, according to market data as of 1:20 p.m. EDT on Aug. 13. The move extended a recent rebound that has partially erased losses from a sharp sell-off following second-quarter results. Tesla remains well below its 52-week high near $499 and is down substantially for the year, reflecting ongoing debate over the pace of its transition from pure automaker to a company centered on robotaxis, humanoid robots and energy storage.

In the second quarter ended June 30, Tesla delivered a record 480,126 vehicles, a 25% increase from a year earlier and well ahead of its own earlier guidance. Model 3 and Model Y accounted for the vast majority of those deliveries. Total revenue climbed 26% to $28.24 billion, the first time the company generated more than $100 billion on a trailing twelve-month basis. Energy storage deployments reached 13.5 gigawatt-hours, up 41%, while services and other revenue jumped 50% to a record $4.58 billion.

Profitability told a different story. Adjusted earnings came in at 33 cents per share, missing Wall Street estimates that had clustered around 50 cents. Operating income fell sharply and free cash flow turned negative by more than $1 billion as capital spending surged. Regulatory credit revenue, once a reliable profit contributor, dropped significantly. The........

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