Analyst Note
| Seth Goldstein, CFA |Tesla delivered impressive third-quarter results as operating profits soared nearly 150% versus the prior-year quarter. The growth was driven by a 73% increase in vehicles delivered and lower costs, with gross and operating margins reaching record highs. We have increased our near-term outlook to incorporate improved automotive gross margins and lower overhead expenses over the next few years. Our long-term outlook, which had assumed increased profit margins, is intact. Having updated our model to reflect these changes, we're raising our fair value estimate to $650 per share from $600. Our narrow moat rating is unchanged.