Tesla reports $1.53 bn in free cash flow amid one-fifth cut to 2026 spending forecast
Tesla reported $1.53 billion in free cash flow for the third quarter, exceeding expectations despite a significant reduction in its 2026 capital expenditure forecast. The company's decision to lower future spending has sparked debate regarding its commitment to AI, robotics, and autonomous driving projects.
Why it matters
The shift in spending strategy raises questions about Tesla's long-term growth trajectory and its ability to maintain a competitive edge in the AI and robotics sectors.
Tesla reported an unexpected $1.53 billion in free cash flow in the third quarter, beating Wall Street's expectations, as the electric vehicle maker spent less than anticipated on capital expenditure.However, a one-fifth cut to its 2026 spending forecast has raised questions about its investment plans for artificial intelligence (AI), robotics and autonomous driving. The company now expects capital expenditure of around $20 billion in 2026, down from its earlier forecast of more than $25 billion.
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