FSD Momentum Accelerates; Margin Strength and FCF Upside Drive a Solid Beat

A stronger quarter supported by higher gross margins in both core auto and energy. FCF also beat on the basis of working capital tailwinds and much lower-than-expected capex. Regarding capex, Tesla has only spent $13bn YTD, implying a significant ramp in 4Q assuming the $25bn capex guidance for the year still holds. Noteworthy data points: (i) FSD attach rates on new vehicle sales in North America was >75% (vs. 55% in 2Q26). (ii) Cumulative unsupervised robotaxi miles reached nearly 2mn at the end of September and have subsequently increased to ~3.3mn miles today, implying a ~20% weekly growth rate. (iii) Energy Storage margins came in well ahead of expectations (unclear if there are any one-timers), with the company highlighting record order rates and backlog. We look for more clarity on the pricing environment, given the implied Energy ASP compression in the quarter. 3Q26 results: Revenue $28.05bn, -0.7%/-0.3% vs. MSe of $28.24bn and consensus of $28.13bn;