Tesla: Record Auto Backlog Tells The Whole Story

Tesla remains a core buy as it builds unmatched leadership in vehicles, robotics, and energy despite market volatility and valuation concerns. TSLA's Q3 saw record auto backlog, rising FSD attach rates (75% in North America), and sequential margin improvements despite flat revenue and production constraints. Gross margin expanded to 19.6% (+160 bps y/y), with FSD subscriptions and the energy business (33.1% margin) providing significant incremental profitability.