Tesla shares fall 5% premarket after 2026 capital spending cut
Tesla's stock slid 5% in premarket trading after the company announced it's cutting its 2026 capital spending forecast from over $25 billion to about $20 billion.
This move has some investors worried that Elon Musk's big plans for AI and robotics, like robotaxis and the Optimus robot, could slow down.
On the bright side, Tesla surprised with positive free cash flow last quarter thanks to lower spending.
Budget cut may delay Tesla projects
Analysts say the budget cut relieves short-term financial pressure but could push back key tech projects.
Even with shares down 14% this year, Tesla is still valued way above rivals like Ford and GM, showing people are still betting big on its tech edge.
Investors are also keeping an eye out for any news about a possible SpaceX merger, though that could get complicated with regulators.