Tesla cuts 2026 capital expenditure forecast to $20 billion — Cyprus Mail

Tesla has lowered its 2026 capital expenditure forecast from more than $25 billion to about $20 billion. In the third quarter, the company also reported positive free cash flow of $1.53 billion, while analysts had expected an outflow of $4.92 billion, Cyprus Mail reports.

Spending below expectations

For the quarter ended September 30, Tesla spent $4.7 billion on capital investments, twice as much as a year earlier. At the same time, this was below the average analyst forecast of $7.5 billion compiled by LSEG.

The company did not specify which areas would see spending cuts. The lower level of capital investment was recorded as Tesla develops artificial intelligence, robotaxi and humanoid robot businesses.

After the results were released, Tesla shares initially rose 2% in after-hours trading but later fell 2%. Since the start of the year, the company’s shares have lost about 14% of their value.

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Possible merger with SpaceX

Tesla CEO Elon Musk said that a merger between Tesla and SpaceX would be “a good idea” and that the companies had formed special committees to discuss a possible deal. During a conference call with analysts, he provided no further details.

Tesla’s third-quarter revenue remained at last year’s level but exceeded Wall Street expectations. The company’s net profit fell by 43%. Automotive gross margin excluding regulatory credits was 18.1%, above analysts’ forecast of 16.7%.

Tesla delivered 486,532 vehicles in the third quarter and said it was on track for its first annual delivery growth in three years. The company also reported its largest passenger vehicle order backlog in four years and plans to produce 5 million vehicles annually by around 2030, compared with an expected 2.5 million this year.