Tesla's EPS for the third quarter exceeded financial estimates, despite a slight revenue loss, there was a significant beat in EPS and margin improvement.
Tesla's guidance of up to 30% delivery growth in fiscal year 2025 and strong free cash flow margin support a strong buying rating.
Tesla's free cash flow grew at 28 times the consolidated topline speed and gross profit expanded.
Tesla's valuation has significantly increased, potentially reaching a fair value of $293 per share, driven by delivery profit and improved profitability.
A key risk is the possibility of not meeting expectations for delivery growth.