On September 22, Fitch Ratings assigned Tesla (TSLA.O) its first-ever 'BBB' long-term issuer default rating with a stable outlook. This rating reflects Tesla's leading position in the global battery electric vehicle (BEV) market and its strategic direction toward transforming into a physical artificial intelligence company. Fitch expects Tesla's BEV business to maintain strong profitability, but profit margins may decline in the coming years as the company accelerates significant investments in artificial intelligence. These investments will substantially increase capital expenditures, potentially turning mid-term free cash flow (FCF) negative and raising the company's debt. Fitch forecasts that Tesla's capital expenditures will exceed $25 billion in 2026, more than triple the level in 2025, with research and development spending also set to rise. Most of the funds will support the construction and training of the Cortex 2 AI supercomputer, which forms the foundation for Tesla's future FSD, Robotaxi, and Optimus humanoid robot plans.