Fitch Ratings gave Tesla its inaugural BBB investment-grade assessment, citing solid credit strength, a reduced likelihood of default and the company’s global leadership in battery electric vehicles. Tesla shares rose 3.1% Monday to $375.63 and gained 0.7% premarket Tuesday to $377.87. Fitch said Tesla’s shift toward becoming a physical AI company supports its strategy, while substantial AI investment is expected to increase debt and limit the rating. Tesla plans to spend $25 billion on facilities and equipment in 2026, compared with less than $9 billion expected in 2025, and is projected to consume about $10 billion more cash than it generates this year despite holding $43.5 billion in cash. Investors are watching the October 1 Roadster unveiling, third-quarter deliveries and quarterly results, as well as provisional Czech approval for Full Self-Driving, Tesla’s automated-driving technology. Tesla and Sunrun also said their residential battery networks supplied more than 580 megawatts to California’s grid during a recent extreme heat event. Wall Street’s consensus is Moderate Buy, based on 11 Buys, 12 Holds and two Sells, with an average price target of $388.85; a separate consensus view gives a $412.25 target. Valuation remains demanding, with Tesla trading at about 348 times earnings after reporting $0.33 in quarterly EPS against a $0.50 forecast and $28.24 billion in revenue versus a $26.42 billion projection. The company also faces a California racial-discrimination trial, while CFO Vaibhav Taneja sold about $938,000 of shares on September 8 to meet tax obligations tied to vested equity compensation. Institutional investors own 66.2% of outstanding shares, and Tesla stock remains down 17% year to date and 11.87% over the past 12 months.