Street View: Tesla's cash cushion grows, but so do growth questions
BUZZ-Street View: Tesla's cash cushion grows, but so do growth questions ** Tesla TSLA.O on Wednesday cut its annual capital expenditure forecast to roughly $20 billion from more than $25 billion and posted surprise positive free cash flow in Q3 after investing far less in its AI and robotics ambitions than expected
** Shares down 3.7% to $371.83 in premarket trading
MOMENTUM BUILDING
** StoneX ("buy," PT: $475) says the lowered capex outlook seems like deferral, since spending should expand again as the robotaxi fleet, Optimus, solar, compute and a semiconductor fab scale
** J.P.Morgan ("neutral," PT: $430) says capex remains central to the debate and that any delays could help near-term cash burn but also suggests delays in investments that matter for fruition of long-term opportunities
** Morgan Stanley ("equal-weight," PT: $410) says "Tesla's Q3 results offer encouraging proof points on robotaxi scaling and FSD (full self-driving) adoption, while improving auto and energy fundamentals strengthen the earnings foundation"
** Daiwa Capital Markets ("neutral") says improvements in autonomous technology seem to be driving strong FSD adoption, which could help Tesla gain share in a rebounding EV demand environment and limit volume risks
(Reporting by Joel Jose in Bengaluru)
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