Tesla shares fall 4% despite earnings beat as analysts split on AI spending

Tesla shares fell about 4% in premarket trading Thursday despite third-quarter results that beat analyst estimates, as Wall Street expressed mixed views on the company's heavy spending in emerging technology ventures. The stock is down 14% year to date. The company reported adjusted earnings of 48 cents per share, topping the 43-cent consensus, with revenue of $28.05 billion versus the $27.9 billion expected. However, core automotive revenue declined 3% year-over-year, and energy revenue dropped 16% to $2.88 billion, while investments in Optimus robots and robotaxi fleets have yet to generate significant income. Analyst reactions varied widely, with Canaccord Genuity raising its price target to $442 and Deutsche Bank reiterating a buy rating, while HSBC cut its target to $157 and Goldman Sachs maintained a neutral stance. Several analysts noted Tesla lowered its 2026 capex guidance to about $20 billion from $25 billion-plus, citing capital efficiency.