Tesla cuts its spending forecast, clouding the pace of its AI ambitions

Tesla reduced its expected 2026 capital expenditure from more than $25 billion to around $20 billion. Reuters said the company did not provide a detailed breakdown of the cuts, although it surprised investors with positive free cash flow.

The reduction comes as the electric-vehicle maker is also funding artificial intelligence, robotics and manufacturing programs. Tesla shares fell about 2% as investors weighed the smaller budget against the scale of those commitments.