Key facts: Tesla (TSLA) rated BBB by Fitch; heavy capex, CA trial

Samsung's Taylor, Texas fab is reportedly producing prototypes of Tesla's 2nm A15 chip for use in Tesla's Full Self-Driving car, Optimus robot, and Cybercab robotaxi. Samsung aims to complete verification by year-end and start supplying chips in 2027, with a capacity of 50,000 wafers per month. The A15 chip is said to offer significant performance improvements over its predecessor. Tesla is a key customer, with a $16.5 billion supply deal in place.

Fitch Ratings assigned Tesla a 'BBB' IDR with a Stable Outlook, citing its strong BEV market position and AI investments. Tesla's profitability is expected to decline due to increased capex, likely turning FCF negative. The company plans to secure up to $30B in debt for investments, with leverage expected to rise. Tesla's unique business model and reliance on Elon Musk are key factors in its rating.

Elon Musk confirmed no automakers have licensed Tesla's Full Self-Driving (FSD) technology. Tesla has offered FSD licensing since 2021, but automakers may avoid it due to hardware requirements and data-sharing concerns. Meanwhile, The Boring Company plans a 200 mph tunnel between Austin and San Antonio, following a $3B funding round. Tesla's robotics team audited Chinese suppliers for Optimus, certifying three manufacturers for mass production, aiming for 1,000 units/week by late September.

Xianyu responded to allegations of pornography-related issues by setting up a task force and freezing 98,358 risk accounts. AMD's market cap exceeded $1 trillion. OpenAI urged the U.S. to lead global AI standards. Tesla's robotics team audited supply chain factories. Zhong Nanshan's team found new trends in pulmonary nodule incidence.

Tesla TSLA shares rose 3% to $375.17 as a California discrimination trial involving its Fremont factory began. The trial, which may last until October 30, alleges harassment, unequal pay, and fewer promotion opportunities for Black workers. Tesla denies wrongdoing. The stock's valuation is 12.33% above GuruFocus's fair value estimate.

Tesla has reopened reservations for its delayed Roadster, requiring a $50,000 deposit ahead of an October 1 event in Texas. The event may include a demonstration of SpaceX-designed cold-gas thrusters. Tesla's Full Self-Driving (Supervised) system has been approved in Czechia, expanding its availability in Europe. The FAA has established a temporary flight restriction over SpaceX's McGregor facility, likely related to the Roadster reveal.