Tesla shares drop 2% after capex cut raises doubts on Musk's AI and robotics plans

reuters.com [$] —

Tesla shares fell 2% on Thursday after the company cut its 2026 capital spending forecast to about $20 billion from over $25 billion, raising investor concerns about Elon Musk's AI and robotics ambitions. The reduction followed lower-than-expected third-quarter spending on AI and robotics, which produced a surprise positive free cash flow. Analysts noted the cut signals slowing growth, though Tesla attributed it to efficient capital deployment. Tesla's stock is down 14% this year and trades at 188 times forward earnings, far above rivals. The move comes as Musk explores a potential merger with SpaceX, which could face regulatory hurdles.


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