From Seekingalpha · Carla Magliocco · · 50s
Tesla Q3 FSD Subscribers Drive Profitability
Tesla's FSD subscriptions could boost Q3 profits as new record subscribers expected.
In brief
Tesla's FSD subscriptions could boost Q3 profits as new record subscribers expected. Tesla expects FSD subscriptions to reach 750,000 by Q3, potentially driving profitability despite cash flow pressures. Originally reported by Seekingalpha.
Tesla's FSD Growth
Tesla's FSD subscriptions grew 56% year-over-year in Q2 with $791 million annual recurring revenue.
Q3 Subscription Forecast
Analyst expects up to 750,000 new FSD subscribers and $860, $890 million annual recurring revenue for Q3.
Rating Downgrade
Carla Magliocco reduces Tesla rating from Strong Buy to Buy due to increased capital expenditures and projected negative free cash flow through 2026.
Long-Term Value
Despite high valuations and cash flow pressures, Tesla's FSD and other innovations are expected to deliver long-term value through scaling.
What matters most
Tesla expects FSD subscriptions to reach 750,000 by Q3, potentially driving profitability despite cash flow pressures.
