Tesla Cuts 2026 Spending Forecast to $20 Billion

Tesla lowered its 2026 capital-spending forecast to about $20 billion from more than $25 billion and reported positive free cash flow for the third quarter, as weaker-than-expected investment spending helped lift cash generation while profit declined. Chief Financial Officer Vaibhav Taneja gave the revised outlook on Tesla’s October 21 earnings call. The company did not identify which projects or spending categories would receive less funding. Tesla had previously said its 2026 capital spending would cover areas including artificial-intelligence computing, manufacturing, research and charging facilities. For the quarter ended September 30, Tesla reported $1.531 billion in free cash flow. Capital spending was about $4.7 billion, below analyst estimates reported in coverage of the results. The company had generated a $1.092 billion free-cash-flow outflow in the second quarter and $3.990 billion a year earlier. Tesla’s revenue was about $28.046 billion, little changed from a year earlier, while net income fell 43%. The cash-flow result came alongside lower spending, not stronger earnings. Tesla ended September with $45.447 billion in cash, cash equivalents and short-term...