On October 26, China Merchants Securities International issued a report, revealing that, owing to escalating R&D and sales management expense ratios, coupled with a more gradual acceleration in Cybercab production, it has significantly revised downward its projected net profit attributable to the parent company for Tesla. The adjustments amount to reductions of 41%, 44%, and 53% for the years 2026, 2027, and 2028, respectively. Concurrently, employing a sum-of-the-parts valuation approach, the firm has trimmed Tesla's target price by 19.7%, from the preceding $441 to the new figure of $354, while retaining a "Neutral" rating. The bank acknowledges the substantial long-term growth prospects of Tesla's FSD, Robotaxi, and Optimus ventures. However, it also cautions that, in the short term, the uptick in R&D and capital expenditures implies that attaining scalable profitability will still require a considerable amount of time.