Good morning, market mavens and EV enthusiasts. Aimee Joiner here, cutting through the noise to bring you the sharpest takes on Tesla's latest moves.

Grünheide Gears Up for Major Production Hike

Tesla is signaling a significant ramp-up at its Grünheide factory near Berlin, projecting a substantial increase in production volume for the 2026 financial year Free Malaysia Today. The company's German manufacturing unit anticipates improved capacity utilization and plans to expand its supply to over 30 markets, with further new market entries on the horizon Free Malaysia Today. This strategic push follows earlier ambitions to boost Grünheide's output to as many as 7,500 vehicles per week, equivalent to approximately 375,000 vehicles annually, alongside an expansion of battery cell production at the site Free Malaysia Today.

The expansion plans include the creation of 3,500 new jobs and a goal to integrate the entire value chain, from battery cells to finished vehicles, at the Grünheide facility Free Malaysia Today. Despite a challenging market environment, the German unit reported a net profit of €77.1 million (US$88.2 million) for 2025, an increase of about €20 million (US$22.9 million) from the previous year Free Malaysia Today. However, revenue for 2025 dipped to €7.1 billion (US$8.1 billion) from €7.7 billion (US$8.8 billion) in 2024, and vehicle production slightly declined to approximately 202,000 units from around 211,000, primarily due to a model changeover and the introduction of new variants Free Malaysia Today. The Grünheide factory, Tesla's sole European production site, commenced operations in March 2022 and currently manufactures the Model Y, employing around 11,000 people by the end of 2025 Free Malaysia Today.

Q2 Earnings: Tesla Headlines a Blockbuster Week

This week is shaping up to be a critical one for the S&P 500's Q2 earnings season, with 86 companies slated to report, including two of the 'Magnificent 7': Tesla (TSLA) and Alphabet (GOOGL) Forbes CNBC. Both tech giants are expected to release their results after the market closes on Wednesday Forbes. The broader market has shown strength so far, with 88% of S&P 500 firms surpassing earnings estimates, contributing to a blended earnings growth rate of 24.7% year-over-year for the index Forbes.

However, the 'Magnificent 7' are projected to lead the charge with an even more impressive 31.1% earnings surge Forbes. Investors will be keenly focused on Tesla's performance, particularly after the S&P 500 dipped 1.5% last week and the 'Magnificent 7' collectively declined by 1.1% Forbes. Given the market's sensitivity to forward guidance and geopolitical developments, Tesla's commentary on production, demand, and profitability will be under intense scrutiny, shaping not just TSLA's trajectory but potentially influencing broader market sentiment for the remainder of the quarter.

FSD to Get Personal: Remembering Your Driving Style

Elon Musk has confirmed that Tesla's Full Self-Driving (FSD) system is slated to receive an update allowing it to learn and adapt to individual driver preferences The Times of India. This development comes in response to user feedback, specifically addressing frustrations where the FSD software might exit faster carpool or express lanes, subsequently getting stuck in slower traffic The Times of India.

Musk's statement on X indicates that the vehicle will "start to remember your specific interventions and match each person's individual preferences," suggesting a more personalized driving experience in future FSD iterations The Times of India. This move could significantly enhance user satisfaction by reducing the need for manual overrides and better aligning the autonomous system with an owner's preferred driving style, a crucial step in the ongoing refinement of Tesla's self-driving capabilities.

Market Watch

TSLA closed Friday, July 17, 2026, at $380.84, marking a 2.61% decline from the prior day's close.

• Mercedes-Benz Group stock traded steady, reflecting solid recent earnings and substantial investments in its electric vehicle strategy ad-hoc-news.de. The premium car division continues to be the primary revenue driver, benefiting from higher-priced models and improved pricing discipline ad-hoc-news.de. However, increased upfront investment in EV technology is noted as a near-term drag on free cash flow ad-hoc-news.de.
• Ferrari N.V. stock is trading near record highs, underpinned by strong profitability and disciplined volume growth ad-hoc-news.de. For fiscal year 2024, Ferrari reported net revenues of approximately EUR 6.4 billion, a double-digit increase from EUR 5.9 billion in the prior year ad-hoc-news.de. Adjusted EBIT rose to around EUR 1.8 billion, up nearly 20% year-over-year, with net income attributable to shareholders growing by approximately 30% to EUR 1.3 billion ad-hoc-news.de.