Tesla shares rallied significantly following a third-quarter vehicle delivery report that exceeded Wall Street expectations. The electric vehicle manufacturer delivered 486,532 vehicles in the trailing three months, surpassing analyst estimates of 461,000 by 5.5%. This performance was driven by strong international sales in Europe and China, where cash discounts helped clear inventory, while U.S. demand remained supply-constrained with wait times extending into 2027. Deutsche Bank analysts responded to the delivery beat by raising their price target for Tesla stock from $370.59 to $420. The firm highlighted that the company's production drawdown of over 22,000 units should provide a tailwind for working capital. While Deutsche Bank raised its third-quarter revenue expectations to $27.7 billion, it maintained a lower EPS expectation of 30 cents compared to the broader market consensus of 41 cents. Looking ahead, Deutsche Bank forecasts full-year vehicle deliveries of approximately 1.8 million units, representing an 11% year-over-year increase and an all-time record for the company. The bank anticipates that fourth-quarter deliveries will track production more closely as inventory levels normalize. Despite the recent stock price surge, Tesla shares remain down over 13% year-to-date, reflecting ongoing concerns about margin pressure and sales volume challenges. The article notes a historical context where Tesla's revenue fell in 2025 for the first time, while margin issues persisted into 2026. In the second quarter of the current year, Tesla achieved record revenue but missed earnings estimates, sacrificing margins to chase volume. Conversely, first-quarter results showed missed revenue but beat on earnings per share. The stock's mixed performance highlights the tension between growth targets and profitability in the current market environment.