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Tesla Cuts Spending Before Potential SpaceX Deal

On Wednesday, Tesla reported $1.53 billion in free cash flow, beating expectations of a $4.92 billion cash burn, while Chief Financial Officer Vaibhav Taneja announced the company is cutting 2026 capital expenditure guidance to roughly $20 billion.
Lower spending on AI and robotics drove the positive cash flow, as Tesla reduced its 2026 capital expenditure forecast from more than $25 billion to roughly $20 billion after investing far less than expected.
Tesla shares slid 5 percent in premarket trading on Thursday as Ryan Lee, senior vice president of product and strategy at Direxion, said the lower capex "raises questions on the next step for the automaker."
CEO Elon Musk said earlier this week that a merger between Tesla and SpaceX was a "good idea," though investment director Russ Mould at AJ Bell warned the risk is Tesla enters "a period of limbo" awaiting news.
Management plans to ramp up spending in 2027 and 2028, supported by a $45 billion cash cushion that allows Tesla to fund research and factory building without selling new shares.

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Reuters

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Tesla drops as spending pullback clouds AI, robotics ambitions

39 minutes ago·London, United Kingdom

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Live Mint

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Tesla shares fall 4% in pre-market after capex forecast cut: Is Elon Musk’s AI and robotics ambition facing a setback?

Tesla shares fell 4% in pre-market trading after the company cut its annual capex forecast to about $20 billion from more than $25 billion.

1 hour ago·New Delhi, India

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24/7 Wall St.

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Tesla Was Expected to Burn $5 Billion. It Made $1.5 Billion Instead

Wall Street had Tesla pegged for a brutal quarter, and the earnings report delivered both a stunning surprise and a troubling signal at the same time. Which one investors should actually care about changes the entire picture.

2 hours ago·Lakewood, United States

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RTÉ

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Tesla cuts spending before potential SpaceX deal

Tesla has cut its annual capital expenditure forecast by a fifth and posted surprise positive free cash flow in the third quarter, after investing far less in its AI and robotics ambitions than Wall Street had expected.

7 hours ago·Ireland

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