2026 capital spending forecast falls to roughly 20 billion from more than 25 billion Thirdquarter free cash flow reaches 1.53 billion versus expected 4.92 billion cash burn Thirdquarter capital spending totals 4.7 billion against analysts39; 7.5 billion estimate, LSEG data shows Reuters Tesla cut its annual capital expenditure forecast by a fifth and posted surprise positive free cash flow in the third quarter on Wednesday, after investing far less in its AI and robotics ambitions than Wall Street had expected. The unexpected cash generated in the quarter comes at a critical moment for Tesla, as CEO Elon Musk explores combining the EV maker with his far more capitalintensive space venture, SpaceX. While the lower spending strengthens Teslas financial position ahead of any deal, preserving cash at the expense of investment in AI, robotaxis and humanoid robots could undermine the very growth story investors are betting on. Tesla shares, which had risen 2 in afterhours trading after the company reported positive cash flow, higher gross margin and marketbeating revenue, reversed course to trade down 2. They have fallen about 14 this year. The free cash flow beat was a pleasant surprise, but when combined with the lowerthanexpected capex, raises questions on the next step for the automaker, said Ryan Lee, senior vice president of product and strategy at Direxion, which offers ETFs tied to Tesla. Lower capex suggests less of an 39;allin39; approach to the AI arms...
Tesla Cuts Spending ahead of SpaceX Deal as Musk Bets on AI
