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Tesla Faces Earnings and Margin Pressure But Free Cash Flow Soars

publication date: Oct 23, 2025
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Image Source: Tesla. 

Tesla’s cash flow from operations was roughly flat year-over-year at $6.24 billion and the company slowed capital spending to $2.25 billion, resulting in free cash flow of nearly $4 billion in the quarter. Cash and cash equivalents totaled $41.65 billion at the end of the quarter versus $7.7 billion in debt and finance leases, resulting in a net cash position of nearly $34 billion. Tesla delivered 497,099 vehicles in the quarter, up 7%, buoyed by a pull-forward in demand from the expiration of the $7,500 government tax credit. Though fourth quarter results may be pressured, the company remains a net cash rich, free cash flow generating powerhouse. The high end of our fair value estimate range stands at $345 per share, however, well below where shares are currently trading.


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