According to Bloomberg, Tesla reported its third-quarter earnings and stated that its capital expenditure for the year will be approximately $20 billion. This is below the company’s previous plan of over $25 billion, due to lower-than-expected investments in the prior quarter, casting doubt on Musk’s plan to transform Tesla into an AI and robotics company.
Financial results showed that Tesla's adjusted earnings per share for the third quarter were $0.48, exceeding analyst expectations. Revenue was slightly below expectations, while the gross margin stood at 19.6%, higher than anticipated. Quarterly free cash flow was $1.5 billion, compared to market expectations of a cash outflow of nearly $5 billion.
Tesla has previously arranged approximately $30 billion in new loans and credit facilities to support the expansion of its automotive, battery, autonomous driving, and robotics businesses.
Tesla Reduces 2026 Capital Expenditure Target to $20 Billion; Q3 Free Cash Flow Exceeds Expectations
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Summary
Tesla reduced its 2026 capital expenditure target to $20 billion, down from over $25 billion, as Q3 free cash flow reached $1.5 billion, significantly exceeding expectations. The spending cut has raised questions about Elon Musk’s push into AI and robotics. Q3 adjusted earnings per share came in at $0.48, surpassing forecasts, while gross margin stood at 19.6%. Investors monitoring altcoins to watch may also be observing Tesla’s moves, as the Fear & Greed Index shows mixed signals. Tesla has secured $30 billion in loans to fund expansion in cars, batteries, and autonomous technology.
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