Tesla cuts 2026 capex guidance to $20B, shares reverse lower after earnings

what happened

According to Stocktwits, Tesla (TSLA) shares initially rose 2% in after-hours trading following the third-quarter report, then reversed and fell 4%. Revenue came in at $28.0 billion against an analyst estimate of $28.3 billion, while adjusted earnings per share were $0.48 versus an expected $0.45. Both revenue and earnings declined from the same quarter of 2025.

CFO Vaibhav Taneja said full-year capital expenditure is now expected at roughly $20 billion, down from the previously forecast $25 billion. The company also secured capacity to borrow up to $30 billion but, he said, does not plan to draw on those facilities this calendar year. CEO Elon Musk remained confident in returns on the spending, but described a bumpy early phase for Optimus, estimating it will take at least a year to reach 20,000 units a week.

why it matters

Lower capex eases pressure on cash flow, which stayed positive at over $1.5 billion in the third quarter, with cash and investments above $45 billion. Investors remain focused on how quickly the robotaxi and Optimus projects will pay off, especially as Taneja said capex will keep expanding over the next few years.

market impact

TSLA: smaller capex plans and a slower Optimus timeline shift expectations for the company's growth.

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