Overview
- Tesla shares have climbed roughly 26% to 30% over the past month as investors bet on Elon Musk’s push for Full Self‑Driving approval in China after his high‑profile visit with U.S. business leaders.
- Quarterly results added fuel to the move, with EPS of $0.41 beating estimates, revenue of $22.39 billion, automotive gross margin up to 21.1%, free cash flow at $1.44 billion, and about 1.28–1.3 million FSD subscriptions.
- Tesla has paused Model S and Model X production to convert the lines for Optimus humanoid robots, and it plans about $25 billion of 2026 capital spending to scale AI, robotaxi, and manufacturing projects.
- Robotaxi operations now run unsupervised in parts of Texas with a small fleet of 39 vehicles, and management says a very large rollout waits on its next major software version, with v15 targeted by early 2027.
- Wall Street remains cautious, with about 45% Buy ratings and an average price target near $400, even as a China green light for FSD could add subscribers to a $99‑per‑month service and speed software revenue growth.