Tesla’s shares fell 2 per cent yesterday after the EV maker cut its capital spending forecast, raising concerns among investors counting on heavy investment for Elon Musk’s AI and robotics vision.
The company on Wednesday lowered its 2026 capital spending forecast to about $20 billion from more than $25bn after spending far less than expected on AI and robotics in the third quarter, which led to a surprise positive free cash flow.
The strong position may prove valuable as chief executive officer Musk explores combining Tesla with the far more capital-intensive SpaceX . Capex is a delicate balance in this market, said Josh Gilbert, lead analyst at Etoro. Investors welcome a larger budget if they can see returns, but a smaller one hints at slowing growth, he added.
Tesla did not break down the areas that would see spending cuts and the leadership on Wednesday attributed the adjustment to managing capital deployment efficiently.
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