# Tesla Q3 FSD Subscribers Drive Profitability

> Tesla's FSD subscriptions could boost Q3 profits as new record subscribers expected.
- Title: Tesla Q3 FSD Subscribers Drive Profitability · Seekingalpha
- Summary: Tesla's FSD subscriptions could boost Q3 profits as new record subscribers expected. Tesla expects FSD subscriptions to reach 750,000 by Q3, potentially…
- Keywords: tesla, fsd, subscriptions, profitability, cash flow, money, business, Subscribers, Drive, Seekingalpha
- Source: Seekingalpha — https://seekingalpha.com/article/4955309-tesla-q3-preview-fsd-could-be-the-key-driver-of-profitability-downgrade
- Author: Carla Magliocco
- Published: 2026-10-19T20:44:35+00:00
- Read time: 1 min
- Topics: tesla, fsd, q3, subscriptions, profitability, cash flow, money, business
## 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.
## Key takeaway

Tesla expects FSD subscriptions to reach 750,000 by Q3, potentially driving profitability despite cash flow pressures.