Key facts
- Tesla's 2026 capital spending forecast was reduced to about $20 billion from over $25 billion.
- The company spent less than expected on AI and robotics in the third quarter.
- Tesla shares have declined about 14% this year.
Tesla shares fell 5% in premarket trading on Thursday after the electric vehicle maker announced a reduced capital spending forecast for 2026. The company now expects to spend about $20 billion, down from over $25 billion previously, citing lower-than-expected investment in AI and robotics during the third quarter. This spending pullback has raised questions about the pace of development for Elon Musk's AI, robotics, and autonomous driving initiatives. Despite the concerns, Tesla reported a surprise positive free cash flow for the third quarter. Analysts at J.P. Morgan noted that while the reduced spending helps near-term cash burn, it may also delay investments crucial for long-term opportunities. The company indicated that spending will ramp up in 2027 and 2028 to fund robotaxi, Optimus, AI compute, and Terafab milestones.