Tesla, Inc. (NASDAQ: TSLA) shares are falling Tuesday as the company continues to face vehicle sales headwinds. Here's what you need to know.

When it comes to Tesla, Inc. (NASDAQ:TSLA), investors have a bit of a quandary. Is the company the sum of its current parts, its future

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What Happened? Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) jumped 5.2% in the afternoon session after Cantor Fitzgerald raised its price target on the stock to $510 from $355, while reaffirming its "Overweight" rating.

“There is no doubt that equity valuations are above average, but stocks rarely fall simply because valuations are high,” said Ulrike Hoffmann-Burchardi, global head of equities for UBS Global Wealth Management. “Instead, declines are more likely when corporate profit growth disappoints.”

Tesla generated $3.9 billion in free cash flow (FCF) in Q3, representing over 14% of its sales. YTD, its FCF margin was 6.86%, implying that TSLA stock could be over 15% too cheap ($502 per share) if FCF stays strong next year.

Tesla stock has been particularly volatile as of late. Shares have moved more than 4%, up or down, eight times over the past month. That kind of trading can leave investors breathless—and looking for some direction.

“ [T]here is more earnings support for the current tech bubble than the one in the late 1990s,” said Ed Yardeni, founder of Yardeni Research. “There isn’t as much air in the current bubble. It isn’t likely to burst, though it might leak air from time to time.”