Tesla (TSLA 18.93%) Stocks opened higher on Thursday following a better-than-expected quarterly report. Critics will point out that an already overvalued stock is now valued even higher. People angered by Elon Musk's political escapades will argue that the gains for a divisive and mercurial CEO can't last.

However, Tesla has been trading higher – much higher – than it is currently for some time. There was also plenty of meat in Wednesday afternoon's financial update to promote a long-term optimistic outlook for the country that has made electric cars viable and ambitious. Let's look at some of the reasons why now could be a good time to buy Tesla shares like there's no tomorrow.

1. Profitability grows faster than sales

The 8% increase in revenue to $25.2 billion in the three months ended September isn't exactly impressive. Investors already knew that vehicle deliveries for the quarter were announced in advance at a 6% year-over-year increase. Average selling prices are falling, but given Tesla's ecosystem of subscriptions, accessories, and Supercharger outposts, it's easy to see why sales are about more than just initial sales.

Boo Birds will point out that Tesla is getting an unsustainable boost from selling regulatory credits to automakers. Add to that the automaker's booming energy generation and storage businesses, which are helping the results. The bottom line is that it still doesn't detract from its outstanding performance.

Net income rose 17% to $2.2 billion in the quarter, more than doubling sales growth. Tesla has cut prices on everything from its cars to subscriptions to its autonomous driving platform. The operating margin was still 10.8%, significantly higher than the 7.6% in the previous year. The bottom line now is finding a way to shine.

This is Tesla's strongest revenue growth in a year and the first time in more than a year that margins have increased and profits have exceeded sales. It was a refreshingly optimistic report.

Image source: Getty Images.

2. Autonomous driving is worth a premium

There is no shortage of video clips on the internet showing Tesla's full self-driving platform at its worst. It was launched in beta a few years ago. There will be mistakes. However, the subscription platform that automates the driving experience keeps getting better with every update.

Tesla points out that the ratio of kilometers to interventions – i.e. how often someone has to step in for something that the car is missing – is getting better. Statistically speaking, an accident with an autopilot is now statistically less likely than with a human behind the wheel. It may never be perfect, but it's a win if it's safer than the owner behind the wheel.

Give it time. Market reaction was muted earlier this month when Tesla unveiled its cybertaxi and robovan. They're still a few years away from hitting the road, and when they do, expect the guts powering fully autonomous transportation to be even better. Tesla assumes that the two-seat cybertaxi will offer an even cheaper transport option than public transport.

3. Musk says Tesla stock will be much higher