Pomegra
Tesla Stock Falls 2% After Cutting 2026 Capex Outlook
Why did Tesla stock fall 2% after earnings?
Tesla (TSLA) stock fell 2% to about $375 on Thursday after the company cut its 2026 capex outlook to about $20 billion from over $25 billion, despite a Q3 earnings beat.
Key numbers
| Adjusted EPS | $0.48vs $0.45 expected |
|---|---|
| Revenue | $28.05Bflat YoY |
| Auto gross margin (ex-credits) | 18.1%+2.7 pts YoY |
| 2026 capex outlook | ~$20Bfrom over $25B |
| Operating income | $718M-56% YoY |
| Free cash flow | $1.53Bvs $3.99B a year ago |
What happened
Tesla (TSLA) stock fell 2% to about $375 on Thursday after the company cut its 2026 capex outlook to about $20 billion from over $25 billion, despite a Q3 earnings beat. Profit of $0.48 a share beat the $0.45 analysts expected, and sales of $28.05 billion, flat from a year ago, roughly matched forecasts. Auto gross margin (profit left from each sale after production costs), excluding regulatory credits, rose to 18.1% from 15.4% a year earlier. Tesla spent $4.7 billion in the quarter and will pay for the smaller 2026 budget mostly from its own cash.
Why it matters
Tesla is planning to spend about $5 billion less than it said on AI and robot projects, and many investors own the stock because of those big bets. Lower spending leaves more cash in the bank, but it can also hint at slower growth. Tesla's shares are also priced far above carmakers like Ford and GM, so investors read every spending clue closely.
Who this affects
- MarketmixedMedium impact
- Tesla holders hit by dip as AI-spending doubts grow.
- CompanymixedMedium impact
- Car margins improved, but operating profit still fell 56%.
- CompetitorsneutralLow impact
- Ford and GM trade far cheaper; little direct effect.
- IndustryneutralLow impact
- Race to fund AI and robotics may be cooling.
Tesla vs Ford, General Motors
How we got here
Tesla reports Q3 after the close: $0.48 EPS, $28.05B revenue, capex outlook cut to about $20B.
After-hours shares slip 2.2% to $377.88 from a $386.47 close.
Shares fall about 2% in regular trading; some trackers show a 3.1% close at $374.58.
What to watch
- Q4 spending: Tesla needs roughly $7B of capex to reach its $20B target.Q4 2026
- Any news on a possible Tesla–SpaceX combination and its regulatory hurdles.Ongoing
- Whether auto margins hold near 18% in the next earnings report.Q1 2027
Educational content only. Not investment advice.
More briefsAll briefs →
CoreWeave Stock Sinks 41% on AI Debt Worries
CoreWeave (CRWV) shares slid as AI-related borrowing quadrupled to nearly $500 billion, IO Fund says.
China's CSI 300 Falls 1.6% for 11th Week as Rare-Earth Deadline Nears
CSI 300 (000300.SS) is about 20% off its June peak as China's rare-earth pause expires Nov. 10.
Oil Falls to $101 as Ukraine Ceasefire Talks Near
WTI crude (CL=F) slid 2% and Brent eased to about $115 as Ukraine, Russia and the US plan November talks.