Tesla Stock Jumps After Unveiling Cheaper Model 3 in Hong Kong

Tesla (TSLA) reported Q2 FY2026 revenue of $28.24B, up 25.5% YOY, but adjusted EPS fell 17.5% to $0.33. Operating margin dropped to 1.4% due to rising costs. Analysts expect Q3 EPS to decline 29.7% YOY. TSLA trades at 196.74x forward P/E and 12.99x sales. Analysts have a 'Moderate Buy' rating with an average price target of $397.60.

Tesla raised Cybertruck prices by $5,000 for two models, aiming to boost revenue per vehicle. The company delivered 480,126 vehicles in Q2, beating production. Analysts expect Q3 EPS of $0.26, down 30% YoY. RBC and BofA maintain bullish views with price targets of $500 and $460, respectively.

Tesla reported its supervised self-driving tech had 4.1 times fewer collisions than manually driven Teslas in five European countries, based on 100M km of data. The company seeks EU-wide approval, with a vote possibly in October. Critics question the data's validity and transparency.

Tesla confirmed its Full Self-Driving system was active during a crash in Batavia, Illinois, that killed a passenger. The crash involved a Tesla Model Y and a pickup truck. Tesla reported the incident to regulators, but redacted key details. The investigation is ongoing, and no charges have been filed. According to Electrek, the crash involved a left turn, a maneuver typically handled by Full Self-Driving, not basic Autopilot.

SpaceX, now publicly traded as $SPCX, is expanding into AI compute, aiming for 10 GW capacity by 2027. It acquired xAI, rents compute to competitors like Anthropic and Google, and plans Starmind satellites. Q2 revenue was $7.8B, with AI compute contributing $2.6B. Elon Musk's control and manufacturing expertise from Tesla are seen as key to SpaceX's strategy.

Tesla (TSLA) rose 5.62% to $368.35 on Monday, driven by market recovery and new product launches in Asia. The company introduced a lower-priced Model 3 in Hong Kong and Macau, aiming to boost demand amid competition. Upcoming events, including a Cybercab reveal, and a China recall affecting 2.98 million Tesla vehicles, are key focus areas for investors.