Fitch has assigned Tesla Inc (TSLA.O) a BBB long‑term issuer default rating for the first time, with a stable outlook, citing Tesla’s strong position as a global EV leader and its strategic shift toward a physical AI company. Fitch says Tesla’s EV operations should remain profitable, but rapid, large-scale AI investment will likely compress margins, require a sharp rise in capex—forecast to exceed $25 billion in 2026, more than three times 2025—and could push mid-term free cash flow (FCF) negati

Fitch has assigned Tesla Inc (TSLA.O) a BBB long‑term issuer default rating for the first time, with a stable outlook, citing Tesla’s strong position as a global EV leader and its strategic shift toward a physical AI company. Fitch says Tesla’s EV operations should remain profitable, but rapid, large-scale AI investment will likely compress margins, require a sharp rise in capex—forecast to exceed $25 billion in 2026, more than three times 2025—and could push mid-term free cash flow (FCF) negative and increase leverage. Most of the spending will support construction and training of the Cortex 2 AI supercomputer, which underpins Tesla’s FSD, Robotaxi and Optimus programs.