Tigress Financial maintains Buy rating on Tesla, $550 price target

Tesla (TSLA) delivered 486,532 vehicles in Q3, exceeding expectations and showing a 2% YoY decline. The company's forward P/E is 159x, reflecting investor bets on autonomous driving and AI. Revenue grew to $28.24B in Q2, but gross margin fell to 16.8%, and free cash flow turned negative. Tesla secured $30B in credit facilities for future investments.

Tesla has renamed its Full Self-Driving (Supervised) feature to 'Tesla Assisted Driving' in Europe, following discussions with Germany's Federal Ministry for Transport. The change aims to facilitate EU-wide approval, with Germany supporting the system if speed limits are adhered to. Eight countries have already approved the system, and a December vote will determine bloc-wide approval.

Tesla received a 30-day extension, until October 30, 2026, to respond to NHTSA's queries about the Cybercab's safety certification, after requesting an 8-week extension. NHTSA seeks details on how the vehicle complies with safety standards without manual controls and why Tesla did not seek an exemption. The probe may impact the Cybercab's expansion plans.

LG Energy Solution reported record Q3 earnings, with revenue up 59% YoY to $7.21B and operating profit up 25% to $565M. Growth was driven by U.S. energy storage demand and European EV sales, offsetting North American EV production slowdowns. The company benefited from U.S. manufacturing credits and automaker compensation.

Germany's Transport Ministry supports Tesla's Full Self-Driving (FSD) technology but urges a name change to 'Tesla Assisted Driving' to avoid misleading customers. The ministry acknowledges the system's performance but emphasizes that drivers must remain attentive. Eight European countries have approved the technology, with a wider EU rollout expected in 2027. Tesla has offered to rename the system in Germany, which could extend to other markets.

Tesla has been granted a 30-day extension, until October 30, to respond to NHTSA's inquiries about its Cybercab robotaxi certification. The company requested more time due to the complexity of the request. NHTSA's Special Order includes 21 questions about compliance with safety standards. Tesla's response must be sworn, with penalties for non-compliance. The company continues to expand its Cybercab fleet in Austin.