From The Motley Fool · Prosper Junior Bakiny · · 1m
Tesla's FSD Subscriptions Grow Fast
Tesla's FSD subscriptions hit 1.74 million, but investors face risks as the company trades at 149x forward earnings.
In brief
Tesla's FSD subscriptions hit 1.74 million, but investors face risks as the company trades at 149x forward earnings. Tesla's FSD subscriptions grew 67% year over year to 1.74 million, but the company's high valuation and robotaxi risks make it risky for investors. Originally reported by The Motley Fool.
Tesla's Q3 Earnings
Tesla's shares dropped 3% after Q3 earnings, with vehicle sales declining 3% year over year.
FSD Subscriptions Grow
Active FSD subscriptions reached 1.74 million, growing 67% year over year.
FSD Pricing and Revenue
Tesla charges $99 monthly for FSD subscriptions, with annual run rate approaching $1 billion.
FSD Attach Rate
FSD attach rate in North America reached over 75%, growing nearly 20 percentage points sequentially.
FSD Data Flywheel
More Teslas with FSD improve software through real-world data, aiding future EV sales and robotaxi services.
Robotaxi Risks
Tesla's Cybercab launch faces regulatory hurdles and a federal safety investigation.
Investor Concerns
Tesla trades at 149.3x forward earnings, raising questions about future profitability.
The bottom line
Tesla's FSD subscriptions grew 67% year over year to 1.74 million, but the company's high valuation and robotaxi risks make it risky for investors.
