FSD Hardware 3 Falls Short; Tesla Q2 Deliveries Miss Forecasts
TSLA sits 42% above its 52-week low of $288.77.
Summary
Cantor forecasts Tesla's Q2 deliveries at ~397K, below consensus, with negative free cash flow expected for the rest of the year after a raised capex of over $25 billion. Critically, Tesla confirmed its Hardware 3 cannot support unsupervised Full Self-Driving (FSD), requiring owners to trade for AI4-equipped vehicles or await a potential retrofit. This FSD hardware limitation is a significant setback for Tesla's core technology and future revenue streams, impacting a large installed base. Separately, NHTSA closed its probe into power-steering loss for approximately 376,241 vehicles after Tesla issued an OTA software fix, resolving a key safety concern. The financial outlook and FSD hardware news present material headwinds despite the positive regulatory closure.
At the time of this announcement, TSLA was trading at $409.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.5T. The 52-week trading range was $288.77 to $498.83. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Wiseek News.