Tesla cuts spending before potential SpaceX deal even as Musk bets future on AI, robots
Revenue is flat on the year as net income dives 43%; adjusted earnings top Wall Street expectations
Tesla reduced its annual capital expenditure forecast by 20% for 2026, revealing a fifth less spending than Wall Street had anticipated. The company reported a surprise positive free cash flow in the third quarter, despite a 43% plunge in net income. Adjusted earnings exceeded expectations, while revenue remained flat. CEO Elon Musk emphasized the shift towards AI, robotics, and autonomous driving, but investors question whether the reduced spending comes at a cost to future growth.
Tesla's shares fluctuated following the earnings report, falling 2% in after-hours trading before recovering to trade down 2%. The company's backlog of passenger vehicles is the largest in four years, driven by high fuel prices and growing demand for electric vehicles.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
